Report
Paradoxically, the increased availability of data for financial forecasting may increase the variability of asset prices and reduce well-being
Investors or analysts who make financial forecasts (of interest rates, corporate earnings, share prices, etc.) can now use more and more, increasingly high-frequency, data (from bank cards, internet connections - searches - mobility, energy consumption, etc.). The use of new data, as opposed to the smaller amounts of low-frequency data used previously, will improve the quality of forecasts. But if all investors or analysts use the same data, instead of forming different fundamental expectations, this will lead to similar expectations and expectation errors (“crowding”). With all savers / investors reacting to the same data, the result will be increased variability of financial asset prices.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.