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Michael P. Regan

Robots Are Eating Your Retirement

Automated strategies are trumping human judgment.

If the wild swings in the stock market don't make much fundamental sense to you (400-point drop in the Dow anyone? Anyone?), there's a pretty good reason: They don't. 

Sure, oil has everyone running scared, but there's something else going on as well.  Trading volume in U.S. stocks picked up in 2015, reaching the highest level since 2011. But it wasn't exactly due to Graham & Dodd-style fundamental stock pickers. Volume from actively managed funds has declined over the last decade as high-frequency trading and index funds grew steadily.  Average daily volume increased noticeably last year even as trading by active funds held steady, according to data from Credit Suisse analyst Ana Avramovic: