A $30 billion computer is about to start selling stocks

ZeroHedge/Tyler Durden/11-14-2018

“A $30 billion computer, run by UBS’ wealth management which oversees $2.4 trillion in capital and entrusted by some of the world’s richest, is poised to underweight stocks as real money and systematic investors pare risk amid flagging bull-market momentum. According to Andreas Koester, head of global asset allocation at UBS Wealth, the quantitative-investing platform is close to trimming its equity holdings to 20% from a neutral 50%, a shift that would lead to an avalanche of selling as hundreds of billions in stocks are forced to find a new home.”

USAGOLD note:  Thought-provoking.  What happens when computers start telling each other to sell – at hair-trigger speed? Someone pulls the plug?  Durden says “there will be no human intermediation to stop the algo-precipitated liquidation.”


Repost from 11/14/2018

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