Citywire asked a number of fund managers for their most frightening investment forecasts. Oliver Dobbs, CIO of Credere, warns us about the dangers of the decreasing role of humans in investment management:

"Across the globe’s trading floors, traders have given way to algorithms. While this is certainly driving necessary innovation, we, as an industry, are also losing something vital in delivering alpha – the human component.

Without this, there is no insight and judgement, which could have calamitous consequences. My belief is the next time we get a volatility event, it will be a lot worse than the recent spike because there will be no one to step in on the other side of the trade.

These disruptive trends are rapidly creating the potential for steeper sell-offs but also arbitrage opportunities. In the current environment, relative-value arbitrage strategies are a true uncorrelated solution offering both stable returns and reduced volatility."

The article is viewable in its entirety (with predictions from 17 investment professionals):

Citywire Wealth Manager:

Oliver's profile can be viewed here.

Eligible investors can view our range of strategies here.

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