Application of Artificial Intelligence Techniques in the Detection of Financial Bubbles

The Financial Market and Commercial Bank approached as cybernetic systems form the core of national and global economic systems, given their unpredictability and their sensitivity to any changes. Is it possible that the information published by the European Central Bank may interfere with stock market developments or financial bubbles? This main hypothesis is the basis of this research. The texts that have been written in English by the European Central Bank between 2000–2022 were taken over and compacted according to the month and year in which they were published and feelings were extracted. In terms of stock market indicators, the 14 most important indices were taken over; 5 from Europe, 5 from North America, and 4 from Asia, which were transformed into monthly returns. Using the VAR model, it has been shown a link between the change in the profitability of the DJIA stock market index and the subjectivity of the texts, the positive feeling felt, if there was a pandemic in the analyzed period, and the profitability of the HSI index. The research showed that financial bubbles could be observed over a period of time, indicating a connection between European Central Bank texts, stock market indices, and financial bubbles.