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Investment Strategy based on Google Search terms

cepheus
cepheus Posts: 20,053 Forumite
edited 25 April 2013 at 5:00PM in Savings & investments
Google Searches Predict Market Move

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.
Seems interesting, although not all of the related search terms (eg. color) have financial relevance, so I guess some terms would be correlated by chance?

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