Most modern money managers turn over stocks on a daily basis. Every tweak up in value of any stock listed on the exchanges triggers flashing red lights and alarm bells on a thousand computer screens worldwide.
Automated computer trade programs lock in gains and sell that stock on the spot.
Every bit of good news from any stock is reported real time on the networks. Every time, the stock zooms up. Every time the stock zooms right back down as day traders lock in their gains.
Any hint of bad news sends the same stock plummeting into a black hole. Investing isn’t a skill any more; it’s computerized digital robbery.
The major trading houses have it all down to a science. They know when and where the steady inflows of cash come in from 401k plans. They know how to buy and sell stocks to take that money out as soon as it’s invested.
The best scientists and engineers are bought fresh out of grad school by Wall Street and put to work building better, faster, more efficient computer models.
It’s little wonder that the stock market is at the same level as it was ten years ago.
