All you investors with your crazy research and economic "theories": You should just be reading Twitter! Derwent Capital, a hedge fund that bases its investment strategy on Twitter data, outperformed the market in its first month.
According to eFinancialnews:
Derwent Capital, which finished its first month of trading at the end of July, beat the S&P 500 which fell 2.2% in July, while the average hedge fund made 0.76%, according to Hedge Fund Research.
How does Derwent work? It invests in whatever Justin Bieber tweets about that day. Nah, that's not how it works. It actually "uses sentiment data mined from millions of Twitter messages… to predict market movements." And it works! We must invest all of America's money into Twitter hedge funds and trend our way out of this recession.
[Image via Getty]