Predicting markets with music
Chart-topping music hits act as a litmus test for the mood and opinions of society as a whole. This information, with the right analysis, can prove invaluable in predicting the stock market.
The Socionomics Institute has focused its research on the impact such cultural trends and the effects they can have on wider society. For example, how have the reactions to James Bond films over the last 50 years been affected by the state of industry in the US?
Practical analysis can reveal the correlations between social mood and societal behaviour. This research can then be applied to forecast likely outcomes of anything from political elections to a company IPO.
Bloomberg's Odd Lots podcast talked to Matt Lampert about this branch of study.
You can find out which other elements of culture the Socionomics Institute uses to generate their 'Mood Riff' reports on their site.