Bloomberg.com – Andrew Lo Study Says Twitter Can Help You Trade Fed Meetings It looked at sentiment `polarity’ in days before the FOMC met Researchers found a predictable enhancement of returns In the social media cacophony, some of the noise rises to the level of stock market signal. That’s the finding of a working paper overseen by Massachusetts Institute of Technology’s Andrew Lo, which says a trading strategy based on views posted on Twitter prior to Federal Reserve policy meetings regularly turned a profit. A one-standard-deviation increase in tweet sentiment can be exploited to boost Fed-day equity returns by 0.62 percent, it found. Quant investors have been obsessed for years with pulling signals out of social media, where roughly 1.8 billion active users opine in real time on everything from tech valuations to celebrity breakups. The MIT study, which examined 3.9 million tweets over seven years, joins an expanding pool of research examining topics such as the role of tweets in market volatility and the accuracy of crowd-sourced earnings estimates.
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The AIM Program at Marquette University began in 2005. Since then over 400 undergraduate students have participated in the program. Our alumni can be found in leading asset managers and investment banks throughout the country - and the world. As the first undergraduate program partner with the CFA Institute, we take pride in our students' successful placements and high CFA exam pass rates. In 2014 we added our second track: Private Equity & Investment Banking. We now offer students an opportunity to participate in the Finance in New York Program. Please feel free to contact us at:email@example.com