Verbs, Nouns and Market Bubbles

Verbs, nouns, and … market bubbles? From some new work:

Fewer Verbs and Nouns in Financial Reporting Could Predict Stock Market Bubble, Study Shows

ScienceDaily (July 19, 2011) — When the language used by financial analysts and reporters becomes increasingly similar the stock market may be overheated, say scientists.

After examining 18,000 online articles published by the Financial Times, The New York Times, and the BBC, computer scientists have discovered that the verbs and nouns used by financial commentators converge in a ‘herd-like’ fashion in the lead up to a stock market bubble. Immediately afterwards, the language disperses.

via Fewer verbs and nouns in financial reporting could predict stock market bubble, study shows.

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