Swimming Pool Scuttlebutt

This morning while I was swimming my laps at my condo a few of us started talking about the segment on “60 Minutes” last night about super computers that are now doing as much as 70% of the trading on the stock exchange.

All of us agreed that this is scary stuff especially when a large portion of our retirement savings is wrapped up in stock funds susceptible to this type of activity.

We also came to the conclusion that there will be many more events like the Flash Crash that occurred on May 6, 2010 when the Dow lost 1000 points because of an algorithm gone wrong.

These types of events will be reminders of the “bad” part of too much technology and unfortunately the individual investor will probably be the one who is most hurt when this type of thing happens.