I have a healthy respect for macro hedge funds. They not only amass an unbelievable amount of data on the most diverse areas of life, but they also ask the difficult questions that we would ordinarily be afraid to ask. They simulate everything including doomsday scenarios.

They were some of the earliest adopters of machine intelligence to track and try to predict trends. One of their models picked up data on #COVID19 very early and that is why you notice that a lot of people sold early and the markets reflected it quite quickly at the onset.

Those models can also be very wrong about the extent of change. I don't think any model could simulate the collapse of entire industries and the move by countries towards isolation. Mankind has suddenly been set back by almost a century. We have retreated back to tribes.

The interesting thing is that the hedge fund algorithms are constantly learning with this period seen as a ”regime change.” The learning will help with better prediction of trends in the future. My problem is that these hedge funds also manipulate markets to their advantage.

Too much knowledge by them is not a good thing. They have abstracted things so much that we are actually really living in a matrix. We never really leaned anything from the last global financial crisis that claimed Lehman and others.

I worry that those who own the hedge funds may have gone too far with playing macro games and forget that everyday life is about micro adaptations. While funds and corporations can adapt quickly to change or even predict it, workers are usually caught unawares.

Funds would not even be possible without the work the average man on the street does, yet they are mere statistics. Economic tools and data points. Governments are the wild cards but even governments are typically manipulated. Markets are being over-optimized for a small group.

I think the aftereffects of the #COVID19 pandemic gives us a new opportunity to revisit markets and how they work. The regime change is about markets themselves and in a way meta to the same players profiting from volatility. Let's not let a good crisis be wasted.

Collaboration and data gathering will now be at an all-time high rate as markets have now realized the fragility of so-called blue chips. The data arbitrage games top players have played for so long will meet it's match as decentralization happens. The fast will eat the slow.