January 6, 2012

Twits ruining my portfolio - is there a doctor in the market?

I always had my suspicions
“We establish that stock micro blog with its succinctness, high volume and real-time features do have predictive power over future stock price movements.”
The research indicates that reason has no value in the market
“Noise traders have the ability to affect stock prices whenever information can be shared among investors and spread quickly through web channels … Microblogging is one such channel where sentiments of irrational investors spread quickly with the continuous streaming of information. Specifically sentiment, represented by opinions, plays a vital role in this diffusion.”