Wednesday, August 3, 2011

Predicting Bubbles and Crashes

The New York Times writes about two university researchers in Ireland who
have written a paper, "Mining the Web for the 'Voice of the Herd' to Track
Stock Market Bubbles," that asserts that as financial commentators repeat
the same optimistic words about the stocks, this language provides evidence
that group think has grabbed hold in the period leading up to and during an
economic bubble. Patricia Cohen of Arts Beat takes a look at their language
test:
http://artsbeat.blogs.nytimes.com/2011/08/02/thinking-cap-predicting-bubbles
-and-crashes/

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