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Shocking that fear and greed are the two primary factors in our global economy.
by tills13 2y ago
Shocking that fear and greed are the two primary factors in our global economy.
- bboygravity 2y agoExcept the vast majority of trades are done by algorithms who know no fear or greed. I would argue that these market movements themselves have very little to do with human emotion. Now the policy changes (higher or lower interest rates) that trigger certain trading however... Maybe that's what you meant? Even there you could argue that those decisions are not made on a whim nor are they based mostly on fear or greed. Now if we go one step closer to the root cause: (global) government over-spending for decades and insane risk taking in terms of self regulating financial markets (US). Now we're talking fear and greed, yes...
- poikroequ 2y agoThese algorithms are largely reactive. When humans panic and start selling all their stock, the algorithms react in kind and exacerbate the problem. So while these algorithms have no feelings, I think it's wrong to say they "have very little to do with human emotion."
- uncivilized 2y agoAlgorithms are written by humans. They’ll have human bias just the same as traders making trades manually.
- fancyfredbot 2y agoWith short selling you only need greed.
- uncivilized 2y agoThere’s no difference in going long or being short. Both have the hope that your profit turns into a bigger profit and the fear that your loss could turn into a bigger loss.
- tanseydavid 2y ago>> There’s no difference in going long or being short. When you're long, the maximum potential loss is your total investment. When you're short, the maximum potential loss is infinite.
- uncivilized 2y agoThanks. I should have added that I was talking strictly about emotions.
- InDubioProRubio 2y agoActually, with insurance prediction models, the planning horizon for a algorithmically driven economy is quite higher then it used to be. It just discards human suffering involved while the world the business giants traverse changes. Now if there is "human non reality based optimism" and data-driven reality based pessimism, drifting into one another in a continental shift and the Algos predict a "Big One" correction. Then they get jumpy.
- energy123 2y agoPublic equity markets are a brilliant invention that makes us more prosperous. Sometimes there's volatility. So what.
- legacynl 2y agoI think this quote says it all: "Importantly: Fundamentals are sound, the economy is doing fine, there is no evidence of abandoning Japanese equities.” If fundamentals are sound, the economy is fine and people keep their Japanese equity, then what was that crash about?
- knubie 2y agoThe central bank raised interest rates.
- uncivilized 2y agoWhy is this shocking? Fear, greed, hope, etc. are found in all things built by humans.
- tills13 2y agoI thought it was obvious but I should have added a `/s` to my comment.
- uncivilized 2y agoI see, thanks. It was not obvious as comments like yours are found all over HN without the sarcasm.