Wednesday, January 21, 2026

‘Chatter’ and Stock Market Crashes

I took to thinking whether linguistic analysis could predict the stock market. I now did a far more careful analysis of "chatter" before stock market crashes. I found that chatter reliably predicts a crash or major downturn -- two years in advance. A 10% increase in chatter is enough. OBSERVATION: At present, increase in chatter is about 25%. Last year it was about 27.5%. The year before that, no increase. But some stock market crashes, like Black Monday, had more than 100% increase in chatter before it happened.

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