Could real-time conversation through social media actually be used to predict ups and downs in stock market activity? As crazy as this seems, a researcher at Indiana University is proving that it could be possible.

Social Media

Through the use of algorithms, the researchers have devised a way to utilize information from posts on the social media tool Twitter to predict changes in the Dow Jones Industrial Average, and according According to the researchers, their success rate is at 87.6%.

researchers claim that their social media algorithms can predict whether the Dow Jones Industrial Average will rise or fall 2-6 days after the twitter information is measured.

In an industry where there smallest piece of information can create a large competitive advantage, social media could become a commonly used tool for success. Just one more example of the power of social media.

Now many will tell you that this idea is a bit far fetched, but it will be interesting to keep an eye on this idea and see where it goes. For now, Here is a website for more advice and techniques on how you can harness the power of social media to help your business succeed.

Adam Jackson
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