https://www.nytimes.com/2017/03/28/business/dealbook/blackrock-actively-managed-funds-computer-models.html?_r=0
As if there wasn't enough group-think in markets as is: Blackrock is going ROBO.
Institutions are embracing HFT, AI, Quantitative strategies, thinking that this will allow them to outperform. However, the logic is flawed. You will never remove the inherent Herd-Mentality of market participants. A machine will never replace the Creativity & Intution of the human mind.
This reads more like a liability blanket for me. Markets have most certainly been altered and corrupted from Central Bank Intervention spawned from the financial crises. However, do not fool-yourselves into thinking Passive-Investing is the only way, Active management can never outperform, or that Robots will always outperform humans.
Some day, inevitably, the tides will turn & it is the Bear-Markets that separate the wolf from the sheep.
As if there wasn't enough group-think in markets as is: Blackrock is going ROBO.
Institutions are embracing HFT, AI, Quantitative strategies, thinking that this will allow them to outperform. However, the logic is flawed. You will never remove the inherent Herd-Mentality of market participants. A machine will never replace the Creativity & Intution of the human mind.
This reads more like a liability blanket for me. Markets have most certainly been altered and corrupted from Central Bank Intervention spawned from the financial crises. However, do not fool-yourselves into thinking Passive-Investing is the only way, Active management can never outperform, or that Robots will always outperform humans.
Some day, inevitably, the tides will turn & it is the Bear-Markets that separate the wolf from the sheep.
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