In 2013, research revealed that Google trends data may be used to determine large market moves (Preis et al., 2013).
Another investigation has shown that the number of clicks on search results stemming from a given country correlates with the amount of investment in that country (Montria et al., 2010).
Google Trends data used to determine how many searches n(t – 1) have been carried out for a specific search term such as debt in
Let’s look at closer to the method:
Google Trends services
http://www.google.com/trends) on 10 April 2011, 17 April 2011, and 24 April 2011.
The graph illustrates
Preis, T., Moat, H. S., & Stanley, H. E. (2013). Quantifying trading behavior in financial markets using Google Trends. Scientific reports, 3, 1684.
Mondria, J., Wu, T. & Zhang, Y. The determinants of international investment and attention allocation: Using internet search query data. Journal of International Economics 82, 85–95 (2010).