Why are computer traders bullish while humans remain cautious in today's market?
Computer-guided traders haven't been this bullish on stocks compared to their human counterparts since early 2020, before the depths of the Covid pandemic, according to Parag Thatte, a strategist at Deutsche Bank AG.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
25 Best Cities for Living
Tripminutes.com
Undo
The two groups look at different cues to form their opinions, so it's not a shock that they see the market differently. While computer-driven fast-money quants use systematic strategies based on momentum and volatility signals, discretionary money managers are individuals looking at economic and earnings trends to guide their moves. Still, this degree of disagreement is rare-and historically, it doesn't last long, Thatte said.
"Discretionary investors are waiting for something to give, whether that's slowing growth or a spike in inflation in the second half of the year from tariffs," he said. "As the data trickles in, their concerns will either be proven right if the market sells off on growth fears, or the economy will remain resilient, in which case discretionary managers would likely begin to lift their stock exposure on economic optimism."
Wall Street offers a lot of confident predictions, but the reality is nobody knows what will happen with President Donald Trump's trade agenda or the Federal Reserve's interest-rate policy.
Live Events
With the S&P 500 Index hitting repeatedly hitting all-time highs, professional investors aren't sticking around to find out.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
31 minutes ago
- Time of India
Swiss gold industry warns against Swatch boss's US gold tax proposal
Switzerland's gold industry on Thursday voiced skepticism about a proposal by the boss of watchmaker Swatch to introduce a levy on gold exports to the United States in retaliation for U.S. tariffs on Switzerland. U.S. President Donald Trump last week imposed tariffs of 39% on imported Swiss goods, causing shock and dismay in the Alpine republic, a major refining and transit hub for gold. The U.S. Customs and Border Protection afterwards said Washington might put tariffs on the most widely-traded gold bullion bars in the United States. However, Trump said on Monday that gold would not face tariffs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Swatch CEO Nick Hayek told Swiss newspaper Blick that Trump's announcement indicated that tariffs on gold would be painful for the U.S. president. "Now is the time to go on the offensive. Switzerland should order a 39% export tax on gold bars for the United States," Hayek told the paper. "That's where we have to get at him. That's his Achilles' heel." Live Events The Swiss Association of Manufacturers and Traders in Precious Metals (ASFCMP) said that while ideas to better balance bilateral trade were welcome, careful consideration needed to be given to Switzerland's longer-term interests. "An export tax on Swiss gold destined for the USA would not only harm Switzerland economically, but also damage the reputation of a country that has consistently promoted and defended free trade," ASFCMP President Christoph Wild said. The Swiss Economy Ministry declined to comment on the proposal, but said the support of business representatives was in general welcome and helped underscore the close economic ties between the U.S. and Switzerland. Trump justified his 39% tariff by pointing to Switzerland's sizeable trade surplus with the United States. Part of that is due to gold exports. Hayek said that even if a gold levy failed to move Trump, it would cut the U.S. trade deficit with Switzerland. "If Trump doesn't give in to our pressure, we'll at least improve the trade balance with the U.S. if the Americans no longer import gold bars via Switzerland," he told Blick. Switzerland is continuing to hold talks with U.S. officials aimed at lowering the U.S. tariffs.
Time of India
41 minutes ago
- Time of India
Amidst Trump's tariff war, S&P upgrades India's credit rating to 'BBB' from 'BBB-'; outlook stable
In a big boost for the economy, credit rating agency S&P Global has upgraded India's credit rating from 'BBB-' to 'BBB' with a stable outlook, according to an ET report. The credit rating upgrade comes at a time when India is facing the threat of 50% tariffs from the Donald Trump administration. The agency indicated that the stable outlook is based on anticipated policy consistency and significant infrastructure investments, which are expected to enhance India's long-term economic growth. S&P also mentioned that the effects of US tariffs on India are likely to be manageable, with strong economic fundamentals anticipated to sustain the country's growth trajectory over the next two to three years. "We believe the effect of US tariffs on the Indian economy will be manageable. India is relatively less reliant on trade and about 60% of its economic growth stems from domestic consumption. We expect that in the event India has to switch from importing Russian crude oil, the fiscal cost, if fully borne by the government, will be modest given the narrow price differential between Russian crude and current international benchmarks," S&P Global said. During trade policy discussions, Trump referred to India as a "dead economy" and expressed dissatisfaction with New Delhi's decision to keep purchasing inexpensive oil from Russia. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo "I don't care what India does with Russia. They can take their dead economies down together," Trump reportedly stated. The Trump administration's decision to implement a 50% tariff (comprising a 25% base tariff and an additional 25% on India's crude oil trade with Russia) is not expected to significantly affect the Indian economy or its growth trajectory, according to S&P Global Ratings. S&P has stated that these US tariffs do not threaten India's favorable sovereign outlook. On Wednesday, S&P Global Ratings Director YeeFarn Phua expressed that India's growth would not be impacted by Trump's tariffs due to its limited reliance on trade, while maintaining a positive sovereign ratings outlook. As reported by PTI, when asked about the potential risks to India's positive outlook from US tariffs, YeeFarn clarified that India's economy would remain stable, highlighting that exports to the US account for only 2% of India's GDP, indicating low trade dependency. "I don't think the tariffs imposed on India will affect economic growth, mainly because India is not heavily trade-dependent. If you consider India's export exposure to the US relative to GDP, it is just about 2%," YeeFarn Phua stated. S&P anticipates India's GDP growth to remain consistent at 6.5% for the current fiscal year, mirroring the performance of the previous year. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
an hour ago
- Time of India
S&P Global upgrades India's rating to 'BBB' from "BBB-"
Credit ratings agency S&P Global on Thursday upgraded India's long-term unsolicited sovereign credit ratings to "BBB" from "BBB-", citing economic resilience and sustained fiscal consolidation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like With temperatures hitting 95°F, this is the mini air conditioner everyone's buying in the U.S News of the Discovery Undo (More to come)
