Five years since our initial research began quantifying social media sentiment, this milestone offers a moment to reflect on the evolution of a novel data source into a validated market…
Latin American equity markets react visibly to foreign direct investment (FDI), showing a historical correlation between capital inflows and stock performance. FDI flows into the region are dominated by the US and European countries, though China’s presence is expanding rapidly from a small base. Mexico plays a dual strategic role: it maintains a large trade surplus with the United States while deepening commercial dependence on China — a dynamic with long-term implications for both investors and policymakers. In an increasingly multipolar investment landscape, understanding how capital flows, trade integration, and macro-financial linkages shape emerging markets is becoming essential for institutional allocators. Latin America, often perceived as a homogenous risk block, reveals deep structural differences beneath the surface. This article explores the interplay between risk-return dynamics, foreign direct investment (FDI), and trade dependencies across the region — with particular focus on Mexico’s evolving position. Using data from equity market performance, cross-border investment flows, and trade balances, we outline why Latin America’s top economies behave divergently and what this implies for global capital deployment strategies.
Biometric Authentication: A Solution to Increasing Financial Fraud Autors: José Guadalupe Mendoza Macías | José Antonio Quesada Palacios - Date: Nov 11, 2024 In today's business and technology landscape, biometric…
In this study, a database of approximately 50 million tweets was used for the estimation of the positive and negative sentiment factors for 2557 companies operating in US stock market. For each company, the sentiment factors were calculated through the mean equations on GARCH models of different orders. Our findings show that, for 503 companies the negative factor effect has a greater impact than the positive factor effect. The period analyzed was from October 2022 to January 2023, using hourly observations. Results provide evidence to support that there is an asymmetric effect from the factors traveling to the stock market and it takes at least an hour the signal to travel. The investors and regulatory agents can find useful the results given that news has been demonstrated a source of influence in the market. Therefore, news impact can be modeled into portfolio theory using GARCH which is easy to implement and to interpret. Given the exposure of prices and volatility to news, it can be considered that these findings provide evidence to support efficient market hypothesis. Modeling returns and volatility for the assets through GARCH family is a widely known tool. Including the news sentiment on social media is dually a novelty: the empirical demonstration of the effects of social comments on the stock performance and volatility, in addition to the use of a large data set of social network comments in an hourly frequency.