Social Network to predict Mkts ?

Millions of messages about trivial matters are posted on Twitter every day, but one group of hedge fund managers are using them as a crystal ball for market fluctuations - and it's having a big impact.

Analysts at London’s Derwent Capital Markets - described as 'Europe's first social media-based hedge fund' - has launched a £25million fund based on research that suggests tweets foretell whether markets will go up or down.



Read more: Twitter used by hedge fund managers to predict share prices | Mail Online

Wow, that is truly insane! Good read.

i'm skeptical

i don't like the concept of social networking anyway and a glaring fact stops me from believing this research will be useful... social networking is 10% of people talking to 10% of people it's also mainly comprised of "# i'm pregnant/farted/fat/tired" and "i hate my job" but we'll see.

note: the research should not be stopped just because it won't be useful, research for the sake of research is a fundamental tenet of academic license.

Interesting points enragedcow. I had to chuckle at your "research is a fundamental tenet of academic license." Just reminded me of a friend of mine who is a scientist in the lab all the time. He always says he is doing "serious work", but I've yet to see any of it translate to real-world proportions.... lol