We live in an interesting time, don’t we? Everything used to be explained by Newton’s laws of physics. Then it was Einstein’s theory of relativity. Fold into that some Freud and modern economics.And now it’s robots.
Last week, Art Cashin speculated that artificial intelligence explained an unusually speedy reactionary stock market sell-off.
Today, he’s noting that machines may once again explain an unusual synchronisation in the financial markets yesterday.
From this morning’s Cashin’s Comments:
U.S. stocks spent the balance of the day trying, unsuccessfully to get to one knee. By the close, the uniformity of the negative influence was evident. The Dow was down 1.57%; the S&P -1.54%; Crude -1.6% and gold -1.7%. That’s a remarkably tight uniformity in a group of widely different assets. Such a cookie cutter result suggests the very strong influence of computer trading.