The Hathaway Effect
Taken from: Anne Hathaway and Automatic Trading - Robert P. Murphy - Mises Daily http://t.co/SzQo2iH A humorous financial story making the rounds concerns the apparent relationship between media mentions of the actress Anne Hathaway and jumps in the stock price of shares of Warren Buffett's Berkshire Hathaway. The presumed culprits are algorithmic trading programs, which raises the question, What does Austrian economics have to say about computers buying and selling shares of stock? The Hathaway Effect Dan Mirvish at the Huffington Post broke the story, in an article cleverly titled, "The Hathaway Effect: How Anne Gives Warren Buffett a Rise." Mirvish documents the apparently irrational correlation: Whatever you may think of how Anne Hathaway and her co-host James Franco did as hosts of the newer, younger, hipper Oscars, one thing appears to be certain: When Anne Hathaway makes headlines, the stock for Warren Buffett's Berkshire-Hathaway goes up. Think of Berkshir...