Quite a few people believe that most money managers, financial/investment advisers, traders, etc….will be replaced by ever smarter machines and software over the next 10-20 years. That is exactly the topic discussed here How the most powerful female hedge fund manager sees trading changing in the next 10 years
I don’t buy it. Here is why……
The stock market is a much more complex environment. It is based on emotions just as much as it is based on hard data or analysis. As a result, it is only as good as human beings programming the machine. That is to say, you cannot program away emotions of fear and greed. Sure, the machine might not feel it, but it will behave just as a human being would. Probably more so by intensifying volatility and market swings. That is yet to be seen.
In other words, there will always be a Warren Buffett or George Soros or etc….. But with one primary benefit. The models above, black box trading or systematic trading, can greatly improve the performance of outliers when used properly.
