We’re swimming in it. Or maybe downing is a better term. Whatever the correct label, the digital supply of financial and economic data, information and analysis is exploding. We can’t get enough of it. Or are we getting too much? More to the point, Is it helping?
The question for strategic-minded investors is whether the growing amount of information is enhancing our investment results? This is a critical question, in part because the information revolution has only just begun. As David Leinweber notes in his fascinating new book Nerds on Wall Street: Math, Machines and Wired Markets
The future, then, is sure to be one of even more financial and economic information. But is more really better when it comes to investing?
Back in the good old days, when your editor was a staff writer at Bloomberg, there was a brief, shining moment when I thought the financial world was my oyster. In the early days of the job, I was awed by the apparent possibilities that arose from sitting in front of a Bloomberg terminal, which was made available to all employees. The array of data, news and analysis at my fingertips was overwhelming, but I was determined to become proficient at leveraging this amazing machine for not only my day job but for my personal investments as well.