Lessons from stock market research
Market research tends to look inwards when it tries to assess it strengths and weaknesses, but perhaps interesting comparisons can be drawn from the world of stock market research? A recent article in The Economist reviewed the world of stock market research and it revealed some interesting comparisons with market research. The core of stock market research in the past has been provided by organisation such as banks, in the hope that good advice will lead to investors spending more money, which in turn drives revenues from equity trading. The first key comparison is in the size of the market. Market research growth has been relatively flat over the last four years, but the stock market research industry has seen a fall from about $14 billion in 2009 to about $9 billion in 2013 in America. In Europe the fall was from 4 billion Euros to 3 billion. The Economist describes the decline as being driven by the shift to passive investing and algorithmic trading – which might have implications for market research automation and the use of DIY solutions by clients. The Economist highlights some interesting changes in the structure of the reduced stock market research options. For example, […]