The Rise Of Robots & The Risk To Passive

Authored by Lance Roberts via,
In Tuesday’s post, ‘A Shot Across The Bow,’ I discussed the recent ‘Tech Wreck’ and the warning sign that was delivered when trading algorithms begin to run in the same direction. To wit:
‘The plunge was extremely sharp but fortunately regained composure and shares rebounded. A ‘flash crash.’ One day, we will not be so lucky. But the point I want to highlight here is this is an example of the ‘price vacuum’ that can occur when computers lose control. I can not stress this enough.
This is THE REASON why the next major crash will be worse than the last.’
Of course, it generally isn’t long after publishing commentary about the dangers of the current crowding into ETF’s, that I receive some push back.
Shocker: For fee broker advises against indexing — JiveJoseph_Duarte (@JiveJoey_D) June 13, 2017

This post was published at Zero Hedge on Jun 16, 2017.