In a sense, thanks to the algorithmic shift, the stock market has become more like the one in bitcoin, also driven largely by algorithmic trading. It’s just that the fundamental value matters far less than speculative opportunities, which computers, with their superior ability to analyze statistics, can detect better than humans. Existing research is inconclusive on whether algorithmic trading increases volatility: Some recent studies have found that it does, some that it doesn’t. There are indications that unravelling bets on the volatility index contributed to the current stock market plunge. Trump appears to hold an old-fashioned view of the stock market, linking its performance to investors’ expectations about the economy and how companies will do.

Source: thestar February 06, 2018 18:22 UTC