Matt Levine’s Money Stuff: Robot Retail Investors

AI agents in retail investing

People do not like to lose money on stocks. Sometimes a stock goes down, and people who own it sell it to avoid losing more money, so it goes down more. This behavior is to some extent predictable, so there are circumstances in which you might think “if this stock goes below $50, it will probably keep going down to $45.” You might think that as a pure matter of investor psychology: “If the stock goes below $50, a lot of people who bought it at $50 will have losses and panic and hit the ...