12 October 2013

Tweets - a better mousetrap or another hype?

Trying to outrun other market participants with quicker access to news may be the Holy Grail to investment success ever since Rothschild reputedly scored a major investment coup when he got information about the outcome of the Battle of Waterloo before others. So it comes as no surprise that someone would try to mine Twitter for useful and timely investment signals. But be under no illusion - SOME tweets may contain useful information, but which ones, that is the question. This may well be just another momentum-chasing fad - it will be interesting to test the performance record of this approach after a number of years....in the meantime let us remember the old adage: There is a sucker born every minute!