Monday, December 24, 2018

The Stock Market Decline




Since it was reported back in early spring that the stock market uses algorithms to control buying and selling stocks, you can understand why the market is up and down.  But just like we have seen with the use of algorithms with Facebook, it all comes down to how the algorithm is programmed.  We have seen how Facebook has continually used their algorithm to block some conservative views and comments, even though they deny it.  But, it is obvious what is being done just by listening to those that have had their Facebook blocked.  Facebook can deny, but the truth is right there steering one in the face. 

With the stock market it comes down to again who has programmed the algorithm.  Since many of the big Wall Street firms are not Trump supporters, it gives one pause to wonder if the algorithm is programmed to destroy Trump since all the Mueller investigations and congressional hearing have not produced the desired result the Trump hates were seeking. 
I believe the Wall Street firms know what is going to happen, since they have developed the algorithm, and can protect their investment by buying and selling at the correct time while the average investor gets screwed.  I know this sounds out there, but with the economy booming, more jobs available then people that can fill them, more money in people’s paycheck, there is no reason for this decline.  People may claim the China issue is the cause, but China is a bubble economy that can go bust at any time.  China fudges their stats to make it appear better than it actually is.  The fed raises and lowers rates and some claim that is the reason for the decline.  But remember, a Fed rate of even 4 to 5% will not kill the economy as for many years it was at that rate and mortgages were on average even during good times around 5 to 7%. Although some investors may move some of their investment from stocks to bonds, CD’s etc., that Wall Street may not like. So, I think we must examine more closely the algorithm that Wall Street uses.  SEC should review this issue. 

No comments:

Post a Comment