The two studied six months of transcripts from a daily CNBC show, and found that commentators most often anthropomorphize uptrends in market fluctuations (“the Dow fought its way upward”), whilelikening downtrends to inanimate objects (“the NASDAQ dropped off acliff”). This gives investors the false impression that uptrends offermeaningful signals and downtrends are random, though neither followsany particular pattern.
As related in a recent Ideas at Work article,Morris and Ames found that commentators with the most colorful language may do the most damage. And charts, though seemingly harmless, can cloud thinking.
Only one anthropomorphic metaphor does work in describing the market, says Morris, and it comes from Benjamin Graham: manic-depressive.
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