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All-In with Chamath, Jason, Sacks & Friedberg
00:00
Market Volatility and Algos
- The stock market is largely controlled by algorithmic trading from hedge funds using high leverage.
- These algorithms cause significant volatility as their reactions influence other market participants.
- Following the recent banking crisis, algorithms sold $41 billion of global equities, creating a ripple effect.
- Projections suggest these algorithms will sell another $160 billion if volatility remains low, potentially triggering further sell-offs.
- This highlights the risk of leverage in the current market environment, as the dominant trend is selling.
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Transcript
