What’s Behind the Global Market Meltdown | Big Take

[@rampaginwalrus]

Im surprised you guys didn't discuss the effect of AI trading software, what with over 70% of the stock market being AI driven nowadays. I figured that the highly specialized software got tunnel visioned and created a huge bubble.

[@garronjohansen]

What do you mean by “got tunnel vision and created a huge bubble” just curious.

[@rampaginwalrus]

@@garronjohansen it's just how bubbles tend to form. Traders lose sight of the actual companies whose shares are being traded and begin trading by treating the stock market as an isolated existence, making decisions based almost entirely on recent stock market trends. This is how tradebots work. They are unable to consider anything other than market trends when making suggestions. This has gotten especially bad recently as the top 10% of the wealthiest Americans own around 93% of all shares owned by Americans, while the top 1% of people own over 40% of the total. If they want to buy and hold, the bubble gets huge. If they want to sell, the bubble bursts.

[@roc7880]

AI will surely lose money, and I am pleased there was no big bubble anyway, just common sense. the effect of new tech for trading as in 87?

[@PendingBailey]

Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stock portfolio, what’s the best way to take advantage of this bear market?

[@mendozalittlejohn]

you work for 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k into trading from just few months ago and now they are millionaires..,