FYI: The sheer volume of data available today, and the price of obtaining it, can be overwhelming for investors unfamiliar with the field. Gaining a quant-like investing edge by examining credit cards or location-tracking apps can mean writing a big check, with no guarantee of success. Most credit card data starts at $10,000 a year, according to Quandl, a marketplace for alternative data.
Ashby Monk, a Stanford University academic who has studied how funds use data, says that the best way for most investors to use alternative data is as a risk-management tool rather than as an idea generator. “It’s a smart way to begin to dip your toe in the world of alternative data and not get caught up in the arms race,” Monk says. “Think of this as a risk tool to help you better understand your portfolio and the assets you’re investing in, rather than trying to spot some trade that you want to make.”
Regards,
Ted
https://www.barrons.com/articles/how-fund-managers-and-retail-investors-can-use-alternative-data-sets-1543625492
