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For companies who are paid to analyze and predict the future, it seems they should have seen this coming from the outset.
by pseudometa 12y ago
For companies who are paid to analyze and predict the future, it seems they should have seen this coming from the outset.
- kasey_junk 12y agoTrading companies (especially like the ones mentioned here) are not paid to analyze or predict the future. They are largely paid to accurately price short term risk of holding particular financial instruments. This actually leads to some situations where they can be worse at predicting large trends.
- wglb 12y agoYou can bet that they were aware of this possibility. With respect to predict the future, their horizon for that is less than a second, and some simply make money on every share that the trade. And as kasey_junk points out, none of this is about predicting anything. It is about making informed bets. Millions of informed bets.