Influencing the value preferences of potential investors by media ('economic news') is the behavioral part of the financial market game. Any methodical quantification of this economic behavior has to apply game theory, bargaining models and real-time computer power.

my answer would be to question how it would be measured, should it exist.

what you are suggesting relates to market efficiency, and perhaps destabilized (long-term) market efficiency, which is generally measurable.

if it is not measurable, then one can argue there is no such effect.

Yes. Absolutely. A large part of the market movement is based on sentiment and who can get the information first.

Influencing the value preferences of potential investors by media ('economic news') is the behavioral part of the financial market game. Any methodical quantification of this economic behavior has to apply game theory, bargaining models and real-time computer power.

Very interesting answers from colleagues, economic news play major role, assuming honesty and proficiency in news, if not, effects are disastrous, hence, economic news must be very carefully dealt with.

A real story about that:

In the battle of Waterloo, just after the victory of England, some investors sent messages by carrier-pigeons to England that the English army has lost the battle, when those messages arrived and news spread in England, the Sterling Pound collapsed, at this particular hours of time the English partners of the investors who sent the messages bought every amount of Sterling Pound they could. The next day the real news arrived that England won the battle, and the Sterling Pound returned up to its normal value and above. Imagine how much benefits those plungers achieved !!

...have to differentiate between timelines: short-term speculation and long term investment

Yes, we should distinguish between the (temporal) roles of speculators, investors and entrepreneurs in a capitalist market economy.

Yes, most of invester thinks myopically means market will follow the trend and the trend is informed through media. So media plays significant role in psychology

Yes, most of invester thinks myopically means market will follow the trend and the trend is informed through media. So media plays significant role in psychology

Today's movements in economy are being tracked with very sophisticated tools. Such tools are prepared even to reject spurious info or to manage it at adequate level. So, face to speculation and dealing or coexisting with it, it is necessary to think things from the scratch and foresee with probabilities.

Of course, there will always be a ripple effect to any economic situation information. Investments are risks taken by venturing in the unknown despite prior risk assessments and risk management plans. The markets can flourish or have a downward trend based on information in the media

Certainly, economic news is affecting investors' assessments of growth as well as the ability to take risks

It does!

need to first prove that the market is inefficient, otherwise this is just speculation about speculation. put differently, come up with an instrument or measure of the impact

would be interesting to know how (the theory of) speculation affects (the) market efficiency (hypothesis)

Definitively, it is one of the attributes of an efficient capital market. Information effect on prices of instruments quoted on the exchange. This could be positive or negative effect. The type of economic news will affect more to specific stocks depending on its impact to their operations.

Sure, every investor has expectation and the media play vital role in shaping expectations

Thank you very much for your participation in the discussion. Your remarks, conclusions, theses, research results, scientific considerations are very interesting and enrich the discussions in this topic. I invite you to continue the discussion. People interested in this subject.

It depends with market hypothesis, in efficient market hypothesis, the economic news on media will influence investor behavior to a limited extend otherwise normal transaction will ensue. But on a market with weak hypothesis the news will influence investors behavior significantly, since investors rely heavily on speculation.

It may to varying degrees,

Of course economic news in the media influence the psychology of investor behavior in the capital markets

Yes

Dear Friends and Colleagues of RG

Does the influence, type, scope of economic and economic information on the current situation on the financial markets and the condition of macroeconomic determinants describing the entire economy and how they are presented in the media can have a significant impact on investors, especially the so-called small investors, including households, on investment decisions made on the capital markets and thus on the future situation on these markets?

The key issue is social psychology, the psychology of investors operating on capital markets, the ability to influence stock market trends by providing key information in the media on the macroeconomic situation of the country and information provided by rating agencies, large banks and investment funds, central banks, financial supervisors, research institutes and government agencies.

Do you agree with my opinion on this matter?

Is it possible to use the available classic and new media, including the Internet by large commercial financial institutions for their own needs, eg attempt to trigger certain changes in stock exchange trends by providing economic information to the media that may affect investment decisions made by investors?

Are there known, diagnosed, investigated such situations?

Please reply

I invite you to the discussion

Thank you very much

This issue is described in the following publication:

Article Anti-crisis state intervention and created in media images o...

I invite you to discussion and cooperation.

Best wishes