Google Search Trends Provide Stock Market Insights

Searches of financial terms on Google can be used to predict the direction of the stock market, according to an analysis of search engine behavior stretching back nearly a decade.

The research, by U.K. and U.S. academics, is the latest attempt to mine online behavior patterns for clues about future movements in financial markets.

The findings appeared to show that people do more searches on terms such as “stocks,” “portfolio” and “economics” when they are worried about the state of the markets, said Tobias Preis, associate professor of behavioral science and finance at Warwick Business School.

Rises in search volumes for such terms are generally followed by stock market declines, according to the research published in the journal Scientific Reports. By contrast, a fall in financial searches often points to greater optimism among investors, leading to a rising market.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu