Hedge Funds

In Brexit trading, machine beats man

In the weeks leading up to the vote, the trading models at many firms adopted a defensive pose

In Brexit trading, machine beats man
Photo: iStockPhoto

Wall Street is tallying up the winners and losers after the severe market reaction to last week’s Brexit vote. One theme has emerged early – the computers got it right and the humans got it wrong.

Part of the reason: Too many investors bet on the outcome they preferred, economists and analysts say, a powerful example of "projection bias" in the markets.

WSJ Logo
How Trump Got His ‘Big, Beautiful Bill’ Across the Finish LineExternal link

How Trump Got His ‘Big, Beautiful Bill’ Across the Finish Line