Stock Market Thought

[Donald D Michna]

The point of this post is to be purely economic and not meant to be political.

The US is in a weird place right now, but the stock market does not seem to reflect the chaos. We have been hearing for years that high frequency trading is becoming more and more frequent. One of the last articles I can find indicates 80% of trades are automated, see below, the article is from June 2019. With the increased use of Robinhood and other such platforms over the past year, automated trades are sure to have increased.

Getting to the point, I believe that the basic flaw with what is going on in the stock market is 90% of trades are automated and are causing the stock market to deviate from the economy. Once automated trading gets to a point of +90% automation, automated trades will exponentially increase feeding off the growth of the market.

I am curious to hear what everyone's thoughts are on this? 

https://www.cnbc.com/2019/06/28/80percent-of-the-stock-market-is-now-on-autopilot.html