In the last five years, automation has had a positive impact on the bottom line in Wall Street as firms migrated to bot-driven, algorithmic trading.
While good for The Street, the news reports a paradigm shift where many traders are at a disadvantage, trading against a market that is majority bot-driven and subject to more dramatic swings.
We’ve compiled some of those reports below to serve as an educational resource:
“The U.S. Stock Market Belongs to Bots”
Bloomberg | June. 2017
Computerized algorithmic trading “definitely had an impact” on Monday’s violent market swing
US Treasury Secretary Steven Mnuchin, CNBC | Feb. 2018
“The stockmarket is now run by computers, algorithms and passive managers”
The Economist | Dec. 2019
The Expert Warnings
- Yahoo Finance :: Why stock market traders should be terrified of robots in the next decade
- CNBC :: Just 10% of trading is regular stock picking, JPMorgan estimates
- CNBC :: Cramer on computer traders: ‘Why don’t they go work for NASA’...
- WSJ :: Why Are Markets So Volatile? It’s Not Just the Coronavirus.
- Business Insider :: 'Big Short' investor Michael Burry is calling passive investment...
- Seeking Alpha :: The Panic Playbook - A Blueprint For Market Crises
- Investing Daily :: Rise of The Machines: Beware of “Robo-Trading”
- Nasdaq :: Rise of the Machines, Part 1: How Increased Automation in Financial Services Impacts...
- CNN Money :: Machines are driving Wall Street's wild ride, not humans
- Forbes :: Artificial Intelligence Is Superseding Well-Paying Wall Street Jobs
Guy De Blonay, fund manager at Jupiter Asset Management, CNBC | Dec. 2018
The Data – Bots Dominate
- Financial Times :: Volatility: how ‘algos’ changed the rhythm of the market
- Business Insider :: Tiny trades are making up a record share of market...
- WSJ :: Tiny ‘Odd Lot’ Trades Reach Record Share of U.S. Stock Market
- Yahoo Finance :: What You Should Know About High Frequency Traders
- CNBC :: Sell-offs could be down to machines that control 80% of the US stock market...
- The Economist :: The rise of the financial machines
- WSJ :: Behind the Market Swoon - The Herdlike Behavior of Computerized Trading
- Reuters :: Data overload - commodity hedge funds close as computers dominate
- Bloomberg :: The U.S. Stock Market Belongs to Bots
- Monterey Herald :: Attack of the stock market zombies
- ZDNet :: Market volatility: Fake news spooks trading algorithms
- Seeking Alpha :: How Systematic, Algorithmic Trading Impacts Stocks...
- The Economist :: The stockmarket is now run by computers, algorithms...
- CNBC :: Mnuchin - Computerized trading ‘definitely’ helped drive this week’s big market swings
Now Robo-Advising Is Rising
- Vanguard Bets on Robo-Only Adviser
- SoFi comes under scrutiny after its robo forces clients into free ETFs
- JP Morgan is rolling out a robo-adviser with free ETFs to lure new investors
- In 2023, Robots Will Invest $1.26 Trillion of Our Money
- Goldman’s robo advisor is ready to run
- Citigroup unveils free robo-advisor for customers with at least $50,000 at the bank
- Robo-Advisors to Manage $1.4T in 2020, $2.5T by 2023