When journalists start using the same nouns and verbs in their reports, you might want to consider selling your shares quickly. Researchers at University College, Dublin, discovered that in the lead-up to a bubble, journalists displayed a herd-like mentality and all used similar phrases -- "stocks rose again", "scaled new heights" and such like. When the market crashed, their language became more diverse. The verbs rise, fall, close and gain were popular throughout the whole of 2007, but their usage peaked in the week of the crash in October of that year.
Researchers found that the amount of agreement and disagreement in language parallels the major stock market indices. In addition, there was a surge in positive language used just before a bubble burst.
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Posted by: trade4target.com | August 11, 2011 at 05:14 AM
This is the first time I encountered such information. If that's really true then many stock holders would probably be waiting what the journalist will going to write on tabloids, newspapers, and say on live tv news channels just to know or predict a stock-market crash. But for better stock analysis you better have to be check it online and use a software to really monitor your stock exchange.
Posted by: Futures Trading | August 15, 2011 at 09:47 AM
Stock market trading has always attracted individuals looking to increase their wealth.Instead of waiting for years, they take their chances at making money in the very short term, sometimes within hours or minutes. All market investors are looking to buy low and sell high, for the most part. However, there is a cold, hard fact when it comes to buying and selling stocks, especially for traders most people don't make any profits.
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Posted by: Share Market | October 18, 2011 at 07:14 AM
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Posted by: les | November 03, 2011 at 02:05 AM
Very interesting, though it make sense, the stock market runs and changes according to psychological shifts, so obviously the language itself will also influence the market.
Posted by: Trading on line | February 19, 2012 at 03:34 PM