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
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