Francesc Riverola,
Interesting…
Francesc
Google Domestic Trends: Should You Invest Based On Google Searches?
By Techcrunch
Google has launched a new area of Google Finance called “Google Domestic Trends.” Basically, it allows you to look at various sectors of the U.S. economy based on how they are performing in Google’s search index. The idea is that the volume of searches for related queries to a specific segment may “provide unique economic insight,” says Google.
That’s an interesting idea, but does is it actually smart to invest based on one search engine’s data? Google has a few compelling examples for why it could be.
Full Story
As a matter of fact, Jamie Saettele, in his book “Sentiment in the Forex market”, dedicates an entire chapter about how to use news headlines to generate signals.
He has done quite an impressive study on the subject, and one of the sources he mentions is Google Finance. Jamie is a contrarian strategist by nature, what makes the reading really interesting. On pag. 67, he concludes saying:
“Most of the time, the headlines contain what I consider ordinary language such as “Dollar Rallies against Euro”. This would signal that the probability of a reversal is low so the best strategy is to remain with the trend.”
If you feel you need to make something different than everyone is doing in order to make money, I strongly recommend this book.
If you are not a contrarian, you can still use google trends to see what fundamentals are currently in vogue.
Cheers,
Gon