Algos were stewards of the '08 crash, not the reason. It's dangerously naive to believe overexerted housing values and propped up fundamentals weren't to blame.

Algos were stewards of the '08 crash, not the reason. It's dangerously naive to believe overexerted housing values and propped up fundamentals weren't to blame. Not to mention how institutional trust went out the window once it was discovered how poorly loans were written/packaged. Why wouldn't trend following be the winning strategy when the market stayed on a steady climb? Anyone who hasn't continued with that strategy, attempting to call a top to this current market, has probably taken a beating many times over. If anything, Algos helped to correct the market more quickly as those who chose poorly were washed away with greater speed.