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TAG: WISDOM OF CROWDS Return to Free Updates Home Page

Why the Herd Cannot Buy Low or Sell High
The June Socionomist reveals why the "wisdom" of crowds does not apply to investing

By Nico Isaac
7/27/2011 5:30:00 PM

In 1907, an Englishman at a county fair observed that a group of independent opinions offers a better estimate than can any single individual in the group. Fast forward one century, and this idea grew into the theme of a popular book with a really long title: "The Wisdom of Crowds: Why the Many are Smarter than the Few and How Collective Wisdom Shapes Business, Economies, Societies, and Nations."

Filed Under: Robert Prechter, Daily Sentiment Index (DSI), herding, Robert Prechter, socionomics, wisdom of crowds

Category: Socionomics


Why NOT to Join the Crowd that Believes in "Crowd Wisdom"
A fresh orange doesn't have much in common with a rotten apple

By Robert Folsom
7/15/2011 5:15:00 PM

How mind-blowing is Professor Bollen's social mood research? Enough so that a London-based hedge fund now employs a trading strategy based upon the results.

Filed Under: social mood, wisdom of crowds

Category: Socionomics