The Power of Words: A Study of How Search Contents Can Affect Financial Decisions

Figure 1

The cumulative profits of a hypothetical investment strategy’s portfolio. The search term “bankruptcy” is taken as an example to show the differences in profits between Google Trends strategy and Buy & Hold strategy. The green line stands for the cumulative profits gained through Google Trends strategy with 131 months plotted as a function of time, while the red line stands for Buy & Hold strategy in a traditional way.