Computers are making the decisions on buying and selling. Mkt goes up for a couple hours, computers start selling making millions and millions for ETFs and big boys, then mkt goes down. Repeat cycle repeat cycle. That’s where all the huge swings originate. Lots of discussion at SEC about this problem. Investigations underway as I understand current status. Nearly half of All $$ in mkt are computer traded. Big problem. Computers create volatility while making zillions for some in a blink of an eye or faster, and Resulting in losses for human decision makers. Computer trading enables some to make big $ on buying and selling over and over each day. Doesn’t matter if mkt is headed up or down. Your 401k funds their money-making.
And there would be no oversight as to how funds are used. This could be a re-run of the 2017 tax cut, where we were promised the corporate savings would be plowed into increased investment and higher wages for workers, but instead almost all the funds went into stock buy-backs to fluff executive bonuses. Given how much the market has fallen, it is an excellent time for another buy-back binge.
You still don’t get it I guess. We the people are not doing much trading these days. Computers doing most. A five percent uptake is huge profit that the same computer can take many times in the same day by buying and selling on a nonstop basis. After they buy (mkt goes up as result) computers then sell and mkt goes down, so they buy again , then it goes up, then they sell. All in less time that it takes you to scratch an itch.
Imagine how much you could make if you could cause the mkt to go up or go down.
Being he said in a brief a few days ago when someone ask him why he missed a day “I am not going to be here every day I need rest also. Quit making something of nothing” or something to that affect. I am guessing you will be incorrect.
No the calculus has been now explicitly laid out as will we lose more lives to the virus or Depression? (It’s actually another kind of calculus but I’ll be nice for now).
So in two weeks we will be embarking on a grand experiment.