In Reply to: Are markets really this resilient to Trump? posted by confused442 on April 09, 2026 at 14:08:41
Apparently the market is driven to a great extent by computerized trading programs. They use an AI to analyze news including Presidential statements.
Since all the computers use this technology, it becomes a self-fullfilling loop. When Trump says "cease-fire" the AI knows the market will go up, since every other AI knows the market is going up and buys.
Basically, each AI drives the others to buy. It's the same with selling.
It's kind of like the shortage of toilet paper at the beginnning of COVID, where there wasn't a short supply until the fear of a short supply led to panic buying. Once some people started panic buying, it became rational for other people to start panic buying, leading to the shortage the first people were afraid of.
Or it's like a bank run. The fear becomes a self-fufilling prophecy.