The Google Effect?

What can’t Google do? Free email, customized searches, maps, apps, browsers, video—the list goes on. Now researchers claim to have found a link between Google searches and future stock market movements.

Researchers at Warwick Business School in the UK and Boston University in the US say they have developed a method that identifies historical links between searches related to business and politics and subsequent stock market moves.

Using Google Trends data generated between January 2004 and December 2012, the researchers compared changes in search volumes around particular topics to subsequent stock market moves.

Overall, they say they found that increases in searches for information about political issues and business tended to be followed by market falls.

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