Question

What are some of the more important recent trends in financial markets and how do these affect market efficiency?

Answer 1

Some of the most recent trends in financial markets are related to adaptation of the artificial intelligence in predicting of the behaviour of the market and it is just not related to prediction of the share prices but it is also related to tradition of various economic events and relative effect on the prices of the company so these artificial intelligence will be trying to predict market in unbiased manner.

Recent trends are also visible in the market regarding adaptation of system based approach in trading and management of the portfolios and the lack of physical workforce and they are mostly quant based trading which are available to a large trader community now and it is not done through personal interaction so it is mostly machine based execution of the trades.

Another important trend in the financial market is related to large number of robinhood traders as they are being called by the experts and they have flooded the entire financial market in order to make quick returns in short period of time by trading.

These all Robin hood traders and adaptation of the artificial intelligence will be leading to discovery of prices in a better manner and it would be leading to a more efficient market in which there will be proper interaction and higher volume generation for reaching at the fair price so it can be said that these all newly developing trends in the markets are going to make the markets more efficient.