Who came out of last week's little UK vote a winner? And by "winner," we of course mean who made a profit? The answer is any firm where computers are in charge of trading, rather than human beings whose investment decisions were based on their sad little hopes and dreams.
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.