Saturday, January 11, 2014

Twitter Speaks, Markets Listen and Fears Rise



Could the global economy hinge on 140 characters?

Is not it amazing that a simple hoax tweet is able to cause the drop by 150 points in the Dow Jones? Nowadays everything is going so fast that we are not able to control it. Here we can find an interesting article from the New York Times where we can see the consequences of social networks on markets.

In this age, almost everybody can write on the social networks without being aware of its consequences. Politicians, companies and power people use social networks to share information. However, with hackers they are not always the ones who write the information leading to serious problems.  Social networks are everywhere. For example The Securities and Exchange Commission decided on April that companies are able to use social media sites to broadcast market-moving news. Also Bloomberg delivers select posts to hedge funds and investment banks. However, some of them are hoaxs that can origin a loss within investors.


Now, people believe in social networks without thinking about its sources. Everything goes very fast, so also its consequences. This article is a perfect example of it. Even markets based on supposedly serious statistics, information or sources, are affected by social networks. The hard work of an investor can be spoiled by false information that they have no control of authenticity. So people, use social networks in the good way and do not trust everything written on it.

Take care with true information,
                                                                                                                     
Alejandra

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