Data is ubiquitous. Historians will likely peg the moment we as a society figured this out right around now. It will be seen as slightly after the infatuation with social media began to wear off, as Big Data became a buzzword and slightly before we realized that true privacy is antiquated.
The implications for almost all sectors are enormous, but for finance it seems like its impact will be immediate and universal.
The financial markets are a pricing mechanism and that mechanism relies on data. Looking at the most basic building blocks of investment theory, we see that data (or information) sits at its core. Investors simply would not be able to efficiently and effectively price an asset without relevant data.
Access to superior information has long been known as an advantage in the market. Taken to an extreme investors began to seek privileged information – which has been aggressively regulated in an attempt to create a level playing field. A company announcing its revenues or a round of layoffs, or the government announcing macro-economic data, like inflation or employment figures, is tightly controlled information which is often released to the market at specific times and in specific forums.
If data is ubiquitous, however, can such data be truly concealed until that final announcement? This does not infer data leaks or insider information. Data being everywhere, with increasingly interesting and novel collection and analysis, implies that clues are left for those willing to hunt for them. Finance in the 21st century will heavily rely upon discovering and leveraging these new sources of data and new analytics to get to insight prior to the ‘big’ announcement.
Nothing on this site constitutes an offer to sell any securities or the solicitation of an offer to purchase any securities. The content, commentary, posts, links, tweets, re-tweets, presentations, documents, videos, and messages (collectively as "Information") on this site are presented for informational purposes only. The intention of presenting such Information is to provoke thought by the reader as to the potential usefulness of big data, social media, text analytics, social mood, sentiment, user generated content, geo-location, news, events, publicly available information, financial data, investment trends and other data as a way to improve and/or support investment analysis and decision making. The reader should make an informed decision as to his/her investment strategy with his/her registered investment advisor ("RIA") or as an independent investor. Zettacap is not a RIA and does not provide such services. This site may contain forward looking statements and conditional statements using such words as "expects", "appears", "may", "should", "anticipates", or similar words and expressions referring to potential future outcomes. Such statements do not constitute guarantees or recommendations of any kind. Information presented on this site may be incomplete and out-of-date. Additionally, the reader understands that the algorithms used by Zettacap as well as the sources of information used may change periodically, and that the reader will not receive notifications or explanations concerning such changes. By reviewing the Information on this site, the reader agrees to the aforementioned statements and agrees to discharge and exonerate the creators of the Information as well as Zettacap, its owners, and its related parties, from any liability associated with the taking or not taking of actions due to the reader reviewing Information on this site.
© 2018 Zettacap // All rights reserved.