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The formulas they use can trigger big selloff when there is a dip in the market, selling at the new lower price, and all those funds (bazillions worth) are in the same positions.
As they sell, they trigger each other's rules to sell more and more.

The amount of money tracking risk parity these days certainly dwarfs, say, the amount of money using "portfolio protection" strategies in 1987.
When a whole lot of money follows the same formula, and that formula is based on recent prices, sometimes things get interesting.

To wit: Q4 2018! Now not just a herd, a robotic herd following a single central mind. (Borg?)

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