The volume of Google searches for
finance-related terms may predict moves in markets, research suggests.
As the search volume on generic
terms such as "debt", "portfolio" and "stocks"
fell, the Dow Jones average tended to go up - and vice versa.
An investment strategy based on
these search volume data between 2004 and 2011 would have made a profit of
326%.
The analysis in
Scientific Reports was based on publicly available data from the
Google Trends service.
It joins an ever-increasing array of
"big data" studies in which aggregated data are beginning to give
striking insights into behaviour.
Web searches are increasingly
integral to our decision-making, and because of its dominance among search
engines, Google data have already proven their worth in big-data studies.
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