80% of the stock market is now on autopilot

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Ad Orientem
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80% of the stock market is now on autopilot

Post by Ad Orientem » Sat Jun 29, 2019 11:50 am

pmward
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Re: 80% of the stock market is now on autopilot

Post by pmward » Sun Jun 30, 2019 8:29 am

That article claims this creates greater volatility. Yet 2 years ago all the financial media was saying these same exact issues were the reasons why volatility had disappeared. So which is it? It is whatever gets them clicks at the time. Media will generate any article that can get them clicks.
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l82start
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Re: 80% of the stock market is now on autopilot

Post by l82start » Sun Jun 30, 2019 8:32 am

pmward wrote:
Sun Jun 30, 2019 8:29 am
That article claims this creates greater volatility. Yet 2 years ago all the financial media was saying these same exact issues were the reasons why volatility had disappeared. So which is it? It is whatever gets them clicks at the time. Media will generate any article that can get them clicks.
80% of the media is on auto pilot ? ;)
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shekels
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Re: 80% of the stock market is now on autopilot

Post by shekels » Sun Jun 30, 2019 10:19 am

Yup 80% of the stock market is now on autopilot on the way UP and Down. Good Luck out there ;)
¯\_(ツ)_/¯
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Re: 80% of the stock market is now on autopilot

Post by dualstow » Sun Jun 30, 2019 1:52 pm

This thread cracks me up O0
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
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Kriegsspiel
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Re: 80% of the stock market is now on autopilot

Post by Kriegsspiel » Sun Jun 30, 2019 6:42 pm

I think we've talked about this before, but I figure that the same events that cause people to sell their menagerie of individually-held stocks (causing asset crashes) would cause them to sell their single stock index too, causing the same asset crash.
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Re: 80% of the stock market is now on autopilot

Post by Xan » Sun Jun 30, 2019 8:52 pm

l82start wrote:
Sun Jun 30, 2019 8:32 am
pmward wrote:
Sun Jun 30, 2019 8:29 am
That article claims this creates greater volatility. Yet 2 years ago all the financial media was saying these same exact issues were the reasons why volatility had disappeared. So which is it? It is whatever gets them clicks at the time. Media will generate any article that can get them clicks.
80% of the media is on auto pilot ? ;)
I lol'd.
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Re: 80% of the stock market is now on autopilot

Post by sophie » Mon Jul 01, 2019 8:17 am

I get the basic point that fewer and fewer stock trades are being done by active investors.

At risk of being a total ignoramus using some potentially faulty logic: I'd expect that this would reduce the tracking error of individual stocks compared to the market indexes. Market indexes should respond mostly to the total amount of money flowing in and out of the market, rather than the divide between active and passive investing. So I'd expect passive investing to have almost no effect on overall market volatility.

What exactly am I supposed to be worried about here?? Think you guys got it right: it's clickbait. Like the article off to the side about the guru who predicted "20,000 Dow". Well, I can be a guru too! I'll predict 30,000 Dow. At some point in the lifetime of someone who writes news articles for a living, that will come true. Does that mean if I make another totally unrelated and idiotic prediction that someone will want to write an article about it?
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Re: 80% of the stock market is now on autopilot

Post by dualstow » Mon Jul 01, 2019 9:07 am

sophie wrote:
Mon Jul 01, 2019 8:17 am

Like the article off to the side about the guru who predicted "20,000 Dow".
Is that Stansberry? I remember him hawking natural gas investments right before the price of nat gas absolutely plummeted.

Give me autopilot!
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
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