"Markets can remain irrational longer than you can remain solvent." John Maynard Keynes

Google Trends = Vox Populi

Hat tip to Duc for mentioning this.

Google Trends compares search term popularity. It can be used as a predictor of people’s behavior. Here’s the original chart that interested me:

Oil Real Estate bubbles

And here’s a few others I checked out, all over the last 12 months.

Obama, Clinton, McCain:
McCain is gaining interest, while Clinton is losing it

Obama, Clinton, McCain popularity

Inflation, Recession:
most searches for “inflation” are made from Asian countries

Inflation recession

Stock market, Recession:
this year the correlation is nearly perfect

Stock market, recession

Oil, Gold, Silver:
oil is leading, silver slightly lagging; GOLD is most searched from Australia

Oil, gold, silver trends

Dollar, Euro

Dollar, Euro

“Real estate” and “corn” separately (period: all years).
Perfect waves, clearly discernible cycles!

Real Estate trends

Corn trends

This is like looking at stock charts, fun :)

2 comments:

  1. ducati998, 18. June 2008, 22:36

    Kat,

    Excellent stuff.
    Google has come up with some really powerful statistics based on their data gathering. There will obviously be ways to use this, which is what I’m currently having a think about.

    jog on
    duc

     
  2. The Sarcasticynic, 19. June 2008, 5:20

    Wow. I hope Google never tracks my searches on ‘apparel’ and ‘latex.’

     

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