Are you implying that the individual investor should no longer be allowed to invest in markets? Why would you want to limit the free choice of people who wish to invest their money as they see fit? Even if it is based on emotions, luck, or any other largely unpredictable source. That is their choice. Perhaps pursuit of profit is not the only reason to invest. Someone may want to invest in a stagnant company because their grandfather retired from it, a small farming collective because they support organic foods, or any other reason the person sees fit.
Stability in society can be achieved at the sacrifice of freedom, ambition, and reward. I personally don't want that. I am fine with higher degrees of automation of the infrastructure, and am fine with fund managers choosing AI systems to maximize profits, but don't take away from my options to invest or the decisions I can make to support or invest in the things I find important.
No im not implying that, Im talking more about institutional investors and how they trade and evaluate risks on a large scale.
From what colleagues have talked about, the big traders are definately moving to AI systems. But that does not mean protection from volatility. Hasn't the market been stopped a few times in the past couple of years because of what was suspected as a cascading sell-off by AI systems? One AI systems sees some sell-offs then it offloads to protect its position and then all the others follow suit. So can't AI's also cause volatility?
Hahahahaha very very good point