Tapping the Investing Wisdom of Crowds

 By David Bogoslaw from Businessweek

 "Can a sentiment survey of a bunch of individual investors actually predict stock price performance? Crowd Technologies—a neophyte online investing community whose Web site Piqqem enables people to vote on the direction they believe individual stocks will follow—has begun to collect data that shows a correlation between changes in sentiment over short periods of time and the propensity for earnings to outperform or underperform market forecasts.

Piqqem is based on the concept of the wisdom of crowds, the belief that a sufficiently big and diverse group of people will over time be more accurate in their estimates and predictions than even the most talented individuals. Jett Winter, Piqqem's chief executive, has a background in software and has headed multiple startups in Silicon Valley over the past 25 years. He also runs an investment bank, Winter Advisors, and is interested in the trading opportunities that will come out of crowdsourcing stock sentiment."

Read the article.

Image from Flickr Creative Commons.



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