Say, Echo, Do: Strategic Narratives and Revealed Positioning in Financial Markets

Excerpt

arXiv:2609.38545v1 Announce Type: cross Abstract: Machine-learning signals built from financial text treat what institutions say, and what the media repeat, as evidence about value. But whoever shapes a narrative may be trading against it. We study markets with three observable voices: institutional statements (Say), media repetition (Echo) and revealed positioning (Do). We ask when words should be followed and when they should be faded. In a linear-quadratic model of an informed institution tha