Trying to make sense of current financial markets is next to impossible when you consider that complex software is a crucial part of the equation.
Since 2008, world financial markets have become more and more driven by short-term considerations. Markets used to reflect educated human sentiment about economic and business opportunities, but not anymore. Trading technology plus the compensation model for financial asset managers make reading the markets very difficult.
Software that autonomously prices and executes trades across world markets is pervasive and is still expanding. In fact, observers suggest that a majority of trading in markets such as foreign exchanges, commodities and equities is now undertaken by software, and the percentages are increasing.
The trades are not made by humans looking to purchase that commodity but rather by…