The analysis of Google search results has proven there is a correlation between the interest of users in economic matters and the behavior of stock indices. According to British and U.S. researchers, Google, the most popular search engine with English-speaking users, can be employed to foresee future developments on the financial market.
The analysis of 2004-2011 search requests found that frequent “business”, “shares” and “economy” portend that the stock indices might soon tumble, while a small number of economy-related entries is a precursor to a rally.
The Google Trends service, displaying search trends data, has been operating for several years already. It might well be a helping hand for short-term traders. The only thing traders need to do is establish a proper connection between the words requested and user economic sentiment. But there is a hitch to mention — search models tend to change as time goes.
