When a stock marketplace house of cards is about to burst , financial experts start using all the same words to discover what ’s start on , even if – especially if – those Holy Scripture are positive . Groupthink does n’t get much more perilous than this .
That ’s the determination of calculator scientists at University College Dublin , who kick the bucket through 18,000 article by the Financial Times , New York Times , and the BBC to see what noun and verbs financial psychoanalyst were using to delineate the breed market . They find that , in the run - up to various market bubbles bursting , the experts all started using very interchangeable nomenclature to describe what was going on , and these vogue in word enjoyment correlate very closely with how the marketplace really performs .
Professor Mark Keane explain :
“ By plot the distribution of word used in financial articles published online between 2006 and 2010 into a computer simulation , we were able to key what we call ‘ verb convergence ’ and ‘ noun convergency — where the language used by financial journalist show convergence agreement . Our study shows that newsman converge on the same language — ‘ stocks rise up again ’ , ‘ scale new acme ’ , or ‘ soar ’ — as their commentaries became more uniformly confirming in the lead up to the 2007 clangor . They also come along to refer to a modest - than - usual set of market events — presumably because of an increased fixation on a small number of rapidly rising stocks .
study the original paperhereviaInternational Joint Conference on Artificial Intelligence . Imagevia .
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