TEDxZurich - Tobias Preis - Bubble Trouble

When a stock market rises unsustainably, it can create a financial bubble that sooner or later will burst. Dr. Tobias Preis explains whether concepts from physics can be used to create a law describing exactly how such crashes occur.

Tobias Preis, Physicist & Complex Systems Scientist
Dr. Tobias Preis is a scientist and founder of Artemis Capital Asset Management. He performed complex systems research at Boston University and ETH Zurich. He was awarded a Ph.D. in physics and is a member of the Gutenberg Academy. His current research focuses on quantifying and modeling financial market fluctuations. Recently, he headed a research team which provided evidence that search engine query data and stock market fluctuations are correlated.
Web: tobiaspreis.de -- Twitter: @t_preis

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Category:

Science & Technology

Tags:

• English
• TEDxZurich
• Zurich
• Switzerland
• Predictions
• Statistics
• Google Trends
• Stock Markets
• Science
• Business

[animatedscience]

Published in the Philosophical Transactions of the Royal Society A, the study which is mentioned in this TEDx talk, "Complex dynamics of our economic life on different scales: insights from search engine query data", reveals a correlation between Google searches and financial market fluctuations. Reference: T. Preis, D. Reith, H. E. Stanley, Complex dynamics of our economic life on different scales: insights from search engine query data. Phil. Trans. R. Soc. A 368, 5707-5719 (2010).

[drorkenett]

In this very important and impressive talk, Tobias Preis shows how massive new data sources resulting from our everyday interactions with the Internet offer a different perspective on the behavior of market participants in periods before large market movements. Through the analysis of changes in volumes of Google queries for search terms related to stock markets, he and his team were able to identify “early warning signs" of financial market moves