Who Is Winning? The Robots.

Robots are taking over... Robots are taking over... We are playing the game at a different speed. We have to use a strategy that makes that a strength. [Outsider Club logo] Who Is Winning? The Robots. [Adam English Photo] By [Adam English]( Written Mar. 17, 2020 There is a lot of blame to throw around these days, but I want to focus on one place in particular. It isn't President Trump, who can't get through a several-minute speech without his staff having to quietly correct him after press briefings. It isn't the federal government, which can't get its act together and is leaving too much up to a fragmented state and local response. And though I have a serious bone to pick with it, it isn't the Fed, which was too weak and lax about restoring interest rates over most of the last decade and has nothing left it can do but guarantee our money to protect others. [An Open Letter to Investors With LESS Than 250K in Savings]( If you have less than $250,000 set aside for retirement — then you could soon find yourself in a troubling situation... ...Especially if my research about an upcoming financial meltdown comes to pass. Some people could lose up to half their savings. Others may lose everything they’ve got. [CLICK HERE to see my research... and prepare accordingly.]( At this point all the Fed can do is take on more debt from corporations. A massive transfer of wealth is happening right now from the public sector into the private sector. All of these debt purchases, now including the newly announced short-term debt purchases, coupled with a Fed Funds Rate pegged at zero again just reinforces years and years of bad behavior and a deeply flawed paradigm. U.S. nonfinancial corporate debt of large companies is over $10 trillion and represents about 50% of U.S. GDP. Add in small- and medium-sized business and the estimate soars over $15 trillion and the total goes to about 75% of GDP. The fact that businesses are going to fail with such accommodative terms is a terrifying indictment of the real strength of the 11-year bull market. No, today we're going to talk about who is winning in this screwed-up stock market. It's the robots. They're taking over. Algorithmic trading is the reason why we're seeing such massive losses followed by strange and ephemeral rallies. Somewhere around two-thirds of all trades are set in motion by a human setting a computer program free into the wilds of the stock market with a couple parameters built-in. Hence volatility that doesn't make sense. At least for how you and I trade in stocks. It makes perfect sense if it doesn't matter in any way what a company actually does, or how much revenue it pulls in, or anything else that determines if a company does good business. It really wouldn't even matter if it was a real company at all. [This Machine Can Save a Million Lives in Less than 60 Minutes]( It detects viruses like coronavirus, SARS, and swine flu. It also detects bacterial threats like E. coli, listeria, and staph infection. Threat of outbreaks could send this machine’s $1 shares to $20 or more in the weeks ahead. This machine can save millions of lives. Billions of dollars. It can even save the lettuce in your refrigerator... This emergency situation is unfolding fast, so we don’t have much time — [click here for the full story.]( All that matters is momentum and volatility. A bunch of liquid-cooled servers are firing their little silicon bits billions upon billions of times a second and shoving share prices around with large orders within milliseconds or less. The only thing that determines if they make money is if they do it faster — both recognizing the momentum and executing the trade. While we're looking for value, a game of virtual musical chairs is being played at the speed of light in the same place. Take a look at this chart from the Wall Street Journal, it is about as clear of a visualization as I could imagine for how this makes volatility so much worse. [oc 17mar20 chart]I don't want to just complain though. I bring this up for a reason. I'll stress this again — we are playing the game at a different speed. We have to use a strategy that makes that a strength. [The “Tesla Killer” Launches 90,900% Market Surge]( It never dies. It charges in minutes. And it can be recharged forever. Discover why this “Blue Gas” technology is cleaner, safer, and set for a 90,900% sales surge. You can lock in shares of the “Tesla Killer” right now for a few dollars... instead of $400 like Tesla. [Click here for the full story](. Yes, I am worried about a recession. I am not taking my cues from the stock market regarding the probability or severity of one. With the robots in charge, with no reason to buy or sell except to squeeze a couple pennies out of intraday volatility, I'm sticking to a strategy that works at my speeds, with a longer time frame, and with far more nuanced and complete information about what I'm buying. I'm picking stocks and plan on holding them through the volatility, come hell or high water. I'm looking for trends that — though they may be set back for now — will [undeniably advance in years and decades to come](. I'm looking at how the pandemic will act as a catalyst, will change our priorities, and [how this disaster creates opportunities](. And I'm looking towards a future where investors finally realize that the risk of this kind of drop has been building up this whole time and towards the [return of capital to tried-and-true safe assets](. I hope you do the same. Take care, [Adam English] Adam English [follow basic]( [@AdamEnglishOC on Twitter]( Adam's editorial talents and analysis drew the attention of senior editors at [Outsider Club](, which he joined in mid-2012. While he has acquired years of hands-on experience in the editorial room by working side by side with ex-brokers, options floor traders, and financial advisors, he is acutely aware of the challenges faced by retail investors after starting at the ground floor in the financial publishing field. For more on Adam, check out his editor's [page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! 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