High Speed Market Volatility
On January 12, 2016 it was reported that over half of the "S&P 500 Index's compenents were down 20% or more" and 8 days later on January 20, 2016 there was a steep market break in the DOW JONES industrial average falling 1000 points in the first ten minutes of trading. This kind of drastic drop in the market was not possible in the 1970s but between the 1970s and 2016 new technology has enabled everyone to sell at one time.There is now a need to understand how to manage technology and how to anticipate how technology will effect stocks
Dr. Gruber predicted this in the 1980s with on-going talks and consulting. In December 1988 INSTITUTIONAL INVESTOR published my article, “Planning for the Next Market Break.” In the introduction to this article the editor of INSTITUTIONAL INVESTOR summarized “Wall Street is paralyzed when it comes to automation. Here is a way to get moving again.” Note, this futurist prediction has demonstrated validity in just the last month or over 3-decades from when Dr. Gruber first published his prediction.
Dr. Gruber's work in the automation of securities is not just a future prediction. At that time he was consulting with the editor of INSTITUTIONAL INVESTOR, the foremost source of evaluation of asset advisor competence with ratings in “sales, trading, and corporate access,” “leading executives,” “global ranking,” and best “research teams.” The editor of the INSTITUTIONAL INVESTOR, prefaced Dr. Gruber's article with “here is a way to get moving again.”
© 2019 William H. Gruber