Trend-following algorithms tell investors: short everything! The Wall Street Journal
EDINBURGH — Investors who rely on computer models to guide trades are being given the message to take the "chaos bet". That's according to The Wall Street Journal, which reports that trend-following algorithms have turned bearish faster than at any other time since the global financial crisis erupted in 2008. This message is at odds with forecasts from many human analysts, who believe a decline in stock prices presents a buying opportunity. Economists expect global growth to be much slower this year, partly because of trade tensions between the US and China. With US president Donald Trump making noises that a resolution is imminent, risks could ease. Nevertheless, machines direct more trades than ever. – Jackie Cameron
Computer Models to Investors: Short Everything
By Stephanie Yang
(The Wall Street Journal) – Investors have started to shake off last year's steep losses, helping markets regain some ground in 2019. But the robots are still almost uniformly bearish.
___STEADY_PAYWALL___