News Media and Investor Sentiment during Bull and Bear Markets

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The news media have been described by Shiller (2000) as fundamental propagators of speculative price movements. We test whether investors react differently to sentiment in bull and bear markets using the tone of reporting in the Financial Times as a proxy for sentiment. Our sentiment proxy is a daily measure covering the period from 1899 to 2010. We find that the tone of the Financial Times influences trading volume during bull markets. These findings are consistent with noise traders driving trade during speculative booms and Shiller’s press-as-propagators hypothesis.
Original languageEnglish
Pages (from-to)1377
JournalEuropean Journal of Finance
Issue number14
Early online date24 Mar 2020
Publication statusEarly online date - 24 Mar 2020


  • news media
  • investor sentiment
  • stock market
  • bull
  • bear


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