• Pyr@lemmy.ca
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    6 days ago

    Are investors idiots? He’s just going to change his mind again in three days

    • houseofleft@slrpnk.net
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      5 days ago

      Tbf, all these headlines miss that indexes like the S&P 500 are still far down from pre-tariff-mania. Investors are more or less updating their views for how screwed the markets are, rather than betting that everything is fine.

    • UnderpantsWeevil@lemmy.world
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      5 days ago

      Are investors idiots?

      A lot of investment is driven entirely by HFT algorithms and AIs now. The brokers oversee the broad strategy, but the trading is just a dozen different multi-billionaire hedge funds chasing one another’s tails. Market buy-ups and sell-offs are triggered by a handful of headlines and aggregator engines, snowballing up or down based on computers responding to other computers.

      And because the market is increasingly liquid - as more mega-investors like Buffet cash out in pursuit of future buying opportunities - you’ll see sudden sharp inversions caused by the sheer amount of buying power that’s being pent up and released between announcements.

      He’s just going to change his mind again in three days

      Very difficult to price that as a risk variable. And in the meantime, there’s a ton of money to be made speculating on which way his wind will blow next.