Predicting markets is a constant battle of finding some alpha to gain an edge over your competitors. Where your competitors are anyone else that is trading in t

Predicting markets is a constant battle of finding some alpha to gain an edge over your competitors. Where your competitors are anyone else that is trading in the markets. Some find alpha with speed. (See Flash Boys by Michael Lewis for a look at the insane lengths companies go to gain fractions of a second advantages). Some find alpha with better algorithms. You’re positing that because the big tech companies have so much data they should be better at predicting markets. The problem is that having the data is just one part of the problem. Look at satellite imagery. Every hedge fund worth its salt has probably thought of and has used satellite imagery. Virtually all of them have the same access to it. They purchase it through third party providers. There are undoubtedly unused satellite imagery techniques out there that would allow you to gain alpha in the market. So why don’t the hedge funds use these unused strategies? Because having the data is only one part of the problem. Analyzing, preparing, cleaning, and finding a useful way to use the data is the other part. Hypothesizing new ways to look at the data that would reveal some insights is a big part. Data is helpful but it isn’t the end all for making money in the markets.