Moving on to Twitter bullishness and stock market returns, and considering that Twitter bullishness was found to lead Google bullishness, the VAR model was used to see if Twitter bullishness predicts stock market returns. The US stock market was reviewed, mainly due to its large size, and because the USA has the biggest number of Twitter users worldwide.
Various indices were used in the study such as the DJIA, the S&P 500 and the Russel 3000 index. The Twitter bullishness prediction was checked against all of these major US stock indices. As a result it was indicated that Twitter bullishness on the previous day has both statistically and economically significant results for all of the different indices tested. This result was found to be consistent with the model on investor sentiment produced by De Long et al. in 1990.
Moving on to Twitter bullishness and stock market returns, and considering that Twitter bullishness was found to lead Google bullishness, the VAR model was used to see if Twitter bullishness predicts stock market returns. The US stock market was reviewed, mainly due to its large size, and because the USA has the biggest number of Twitter users worldwide.
Various indices were used in the study such as the DJIA, the S&P 500 and the Russel 3000 index. The Twitter bullishness prediction was checked against all of these major US stock indices. As a result it was indicated that Twitter bullishness on the previous day has both statistically and economically significant results for all of the different indices tested. This result was found to be consistent with the model on investor sentiment produced by De Long et al. in 1990.