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Do Google Searches Point To Short-Termism In Oil Markets?

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Mark Melin
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After reviewing Google search trends, Bernstein analysts Oswald Clint and Mark Tabrett have made the determination that oil markets are rife with short-termism. The analysts look at Google search results to draw conclusions regarding a number of oil market trends. Is using Google search analysis or considering social media such as Twitter a valid method to drive investment analysis?

short-termism oil-situation-production-inventory

Searches for supply related Oil searches demonstrates short-termism

Shortly after oil prices started to fall, fundamental investors began searching for solutions. Google trend analysis reveals queries for oil inventories and rig counts picked up and steadily increased since. While supply concerns were well noted, demand-related searches were tempered by comparison.

Searches regarding where...

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.