In my previous post I begged the question: Why won’t robo-advisors save the investment banks? The reason is exactly the same as for all computers. They can only be as wise as the basic algorithms that humans put in them. If human investors can’t escape from the herd instinct as stock markets and commodity prices swing from euphoria to panic and back again for no known reason, then how can robo-advisors anticipate all this and advise clients accordingly?
The irony of the situation is that the central banks of America, Japan, Europe are all at 0% and have lost the traction they used to have — or thought they used to have — over their national economies. Whether China manages to give the world economy a little annual boost by means of continuing to increase their exports — even if only very slightly — remains to be seen. If it doesn’t succeed and joins the doldrum group of nations then we can reasonably guess that the world economy is repairing itself is proceeding towards a steady-state.
Necessary though the correction will be, it will mean grim times for many in the advanced countries and grimmer still for the vastly over-populated remaining countries. Their standard of living will not be able to improve until their populations become a great deal smaller and whatever national incomes they receive can be shared out among a smaller number of people.