Machines take the blame as US stock market sells off - Business News - News Summed Up

Machines take the blame as US stock market sells off - Business News


"Warren Buffett made his fortune by buying low and selling high," said the billionaire hedge fund manager Leon Cooperman, founder of Omega Advisors Inc. "Machines buy strength and sell weakness and aggravate the moves. "Michael Purves, chief global strategist at Weeden & Co, said the market action suggests rules-based, volatility-contingent investment strategies adjusted to the sharp selloff in long-term Treasuries. "It doesn't mean equities are broken but it means in the medium term they get spicy. "A strategy popularized after the wreckage of the 2008 financial crisis, "risk parity" often sees itself blamed when stocks see steep selloffs. "Risk parity didn't have anything to do with yesterday's market movement," said Prince.


Source: The Star October 11, 2018 21:11 UTC



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