, Columnist
Blame Twitter for the Death of Volatility?
As information flows ever faster, it's getting harder to differentiate the signal from the noise.
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Mark Mobius, the executive chairman of Templeton Emerging Markets Group, reckons he's identified a surprising culprit for the slump in volatility currently afflicting financial markets -- the rise of social media. Moreover, a survey of 2,800 millionaires in seven different countries by UBS Group AG's wealth management unit delivers at least some support to his contention that a glut of untrustworthy information is suppressing price moves.
Mobius told Bloomberg News in an interview last week that people's attention spans are getting shorter as the output from social media increases. As a result, he says investors end up sitting on their hands rather than reacting to new information: