AI Threat To Crash Markets?

Fox News contributor Robert Wolf discusses how artificial intelligence could affect the markets.

Algorithmic Trading are trade bots that have been around for a while.

The new religion of artificial intelligence is called Way of the Future, the Internet of things or the Internet of Value.

"What is going to be created will effectively be a god” The divine AI itself.

What is scary here is the following.

God created mankind and mankind created Artificial Intelligence. Given human behavior why would someone not set up an A.I. to sabotage the economy to blame President Trump and put in the Dems/Globalists in 2020?

Remember this is coming from Silicon Valley partnered up with the Deep State.

Just remember this.

AI is a construct of man.

Man, is a construct of God.

God is greater than creation, man and those constructs man makes.

Choose who you will serve.

It will not take AI to do it. The constant increase of index funds (which amounts to passive investing with the index fund merely following a market, up or down, based on which way the active trading has moved it - the lemmings following the pied piper). Index funds are now representing about 35% of the markets trades and some think it will be the majority (51+%) between 2021 and 2024. What that will mean, increasingly, that a minority of traders will be deciding which way the market will move.

Another hidden aspect is that some big firms investment departments are also not really doing active investing, in the traditional sense, but are using their own algorithims totally based on industry by industry “market trends” alone, and not a value evaluation of the companies or their performance. Those algorithims are really just “following the market”.

What it all means is that it is gradually taking fewer and fewer giant traders, or even just group think among a portion of the still “active traders” to push or pull the market up or down, with the index funds, and others executing trades on autopilet set to merely follow a trend active trading starts. Once the direction has enough momentum, a bubble or a bust just follows.

There are few things that keep me awake at night. Among the many things that don't is fear of artificial intelligence effecting the stock market. The stock market is clearly among those things that can be described by the mathematical "Chaos Theory". As I see it, "Chaos Theory" describes processes that have so many affecting variables that the result is completely unpredictable. A common statement describing this is that "the flutter of a butterfly wing in India can influence the development of a hurricane in the Atlantic".

Now even if one could monitor ALL of the butterflies in the world, it would still not be possible to describe the influence, because of the even more critical events that outnumber butterfly wing flutter by orders of magnitude.

Such is the stock market. Even if someone develops an AI system (or any other system, for that matter) that accurately predicts the stock market implementing this system will immediately place the stock market into a position of unpredictability again,because of all the other factors that also influence it.

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