If you have sat down with a financial planner in Phoenix or anywhere in Arizona, the financial planner has proabaly told you about all the sophisticated computer modeling they use that is supposed to make you lots of money. As it turns out, all the computerized financial planning strategies may make you much worse off. If you have money in the market this could be the most alarming article you will read this year. Please take a few minutes to read this article and share it with those you care about. This could help you make a decision on protecting your life savings or the savings of someone close to you.
The article is titled “Computerized stock trading leaves investors vulnerable”. As you’ll see “vulnerable” is an understatement. Here is the full article as well as some highlights below:
Highlights:
- The day the Dow Jones industrials plunged nearly 1,000 points and then recovered in Wall Street’s most volatile half-hour ever, more than 19 billion transactions moved according to regulators.
- The time it takes to read this sentence is all it takes for nearly 2 million stock trades to flash through the stock market.
- Trades are coming from an army of computers programmed to obey complicated algorithms that are hyperactively buying and selling.
- These machines see stocks not as securities used by companies to raise money, but rather, symbols, numbers and bits that are traded, swapped and exchanged.
- More than half of the market’s volume is churned by computers programmed to spot certain patterns in trading.
- And now, traders say, humans are responding to machines rather than the other way around.
- More and more the machines are reacting to each other, trying to second-guess what their next moves might be on how to take advantage of an edge that might be gone in milliseconds.
- “There are no real buyers or sellers,” says Joe Saluzzi, trader at Themis Trading. ”
It’s all about the machines.” - Perhaps most troubling is how computers are giving sophisticated investors with the best digital access to the markets a leg up over regular investors in ways modernization was supposed to do away with. Meanwhile, technological advances are making it nearly impossible for regulators, who play a critical role in maintaining a fair market, to monitor the system that by its very nature has no paper trail and buries transactions in mountains of data.
After you read this, you’ll see why it is so important to have your money guaranteed against market losses. I can set this up for you. Call me directly at 480-970-5663.
