A little different theme to today's post. This was triggered by the article below.
In summary, this article highlights an academic study that shows sentiment on Seeking Alpha is a better predictor of stock market performance than traditional outlets. I've also seen some recent press summarizing analysis of how sentiment on Twitter is a good market indicator.
Obviously, Seeking Alpha (and CCI) are promoting this material because it supports our point of view that the mass intelligence of the investor class could actually be more objective and provide better results than traditional sources of investment advice. After all "crowdsourcing" of information for product reviews, recommendations for service providers, and reviews of movies/restaurants/travel are increasingly the source of information used by many. Shouldn't this main street level information be just as valuable for investments?
This article can/should be considered as "just" an academic study. Of course efficient market theory is also "just" academic theory. "Coincidentally" it happens to support Wall Street's objectives .....wonder why it gets more press? ...hmmm
Lastly, the research behind this article was done by individuals at the Krannert School of Management at Purdue ....where my daughter matriculates.......so "of course" it must be "right"