FT's 125th Anniversary

The Financial Times is celebrating its 125th Anniversary today. The story of the FT can be viewed in the short video below and you can read about it here.

How important is the press for financial markets? Paul Tetlock suggests that the financial press captures and informs investor sentiment. Joel Peress, on the other hand, argues that the press provides information to investors, particularly in the case of small public companies.

Does the press play a role in financial bubbles?  In a recent paper with Gareth Campbell and Clive Walker, I find that the press did not contribute to the hyping of railway stocks during the famous railway mania. Similarly, a study looking at the role of the press during the dotcom bubble found that the it did not contribute to the asset price reversal.