Computer-driven traders are bullish on stocks, while human traders are bearish.

date
13/08/2025
Deutsche Bank strategist Parag That said that since the peak of the COVID-19 pandemic in early 2020, computer-driven traders have never been more bullish on stocks compared to human traders. These two groups form their opinions based on different clues, so it is not surprising that their views on the market differ. Computer-driven short-term quantitative traders use systematic strategies based on momentum and volatility signals, while self-directed fund managers guide their operations through analyzing economic and profit trends. However, That said that this level of disagreement is rare and historically does not last long. "Self-directed investors are waiting for certain changes to occur, whether it is a slowdown in economic growth or a spike in inflation in the second half of the year," he said. "As data is gradually released, if the market falls due to growth concerns, their concerns will be proven correct; or if the economy remains resilient, self-directed fund managers may start increasing their stock exposure due to their optimism about the economy."