Are Stock Traders and Investors in search of lamp of Aladdin?

Everyone loves a good deal. “All you need is a dollar and a dream”, says New York’s Lotto slogan. Agreed and not questioned but I wonder reality strikes how many. That is the moot question.

The best slogan that I like most in the year 2012 is “you get rich slowly’. Many may not agree with me and I will be branded as pessimist. I don’t mind. I know at the end of the day I have to acknowledge my waist lines.  Therefore, I cannot get into an argument with any one whether the current market is in a vibrant or somnolent mood. I don’t know should you follow the herd or not?

When it comes to your personal investments in stocks I once again wonder how many of us could chase successfully the verticality in our balance sheet when stock prices appeared to be curled up in a cozy snooze in recent years. Today’s buzz word in investment circle is the fiscal cliff reforms waiting to see the take off from 1st January 2013.

While taking a hard look at the stock market investments in recent years I cannot resist citing what Prof. Niall Ferguson of Harvard University, in his book “The Ascent of Money” said, “Financial history is the essential back-story behind all history”.

There cannot be any second opinion to the fact that from the recent web of global financial crisis it is evident that the most profound theories in the history of finance have been disproved.

In the words of former Federal Reserve Chairman, Paul Volcker who said that it’s “clear that among the causes of the recent financial crisis was an unjustified faith in rational expectations [and] market efficiencies”. A shift in approach is gradually taking place. A new mind set is emerging when it comes to approaching finance and investments. Investors and traders are increasingly relying on to studies connected with social data to get the pulse of the market.

I also read that in recent months major financial institutions are digging deeper to know investor’s mood deciding and changing information that are available in social networks such as Face book, Twitter, Blogging sites, etc.

Now ‘speed’ matters most when it comes to taking investment decisions.

Undoubtedly Social media has emerged as a biggest connects between business and finance and surely the lamp of Aladdin for investors.

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