J.P. Morgan invents new index to measure the impact of Trump's tweets on the markets – RT Business News
President Donald Trump's tweeting habits have long been speculated to move the markets, but now there is a way that will probably measure it, courtesy of J.P Morgan. And it's called Volfefe, after the mysterious 'covfefe.'
The Behemoth finance company and indexer provider of all kinds insists that the US president has increased the number of tweets in recent months, affecting the markets. And every tweet about the Federal Reserve, China, and tensions in trade, is seen as "that has a bearing on the short-term economic development" the authors of the JP Morgan report wrote.
Among JPMran's findings: there has been an increase in what they call "market-moving tweets" ̵[ads1]1; Trump tweets that are immediately followed by a volatility girl
(2 / x) pic.twitter.com/2oKZMOX8VM [19659005] – Carl Quintanilla (@carlquintanilla) September 8, 2019
With the new index, named after Trump's mysterious & # 39; covfefe & # 39; tweet, analysts tried to explain and show how tweets affect 2-year and 5-year Treasuries.
The company's report said that 146 tweets of 4,000 authentic messages during the market period from 2018 to the present had an impact on the markets. Most often, they included words like "China", "billion" and "products" and got favorable answers.
The report delves into specifics about Trump's tweeting habits: He averaged 10 tweets a day and produced more than 10,000 since his 2017 inauguration. Most tweets come between 2pm and 2pm in the report, and noticing around 3pm can cause problems for US market rates. The study also assumes that the president sleeps between 5:00 and 10:00.
Trump has averaged 10+ tweets a day since the start of 2016. “However, from the beginning of the end of 2018, activity has increased significantly. In fact, the highest volume of tweets in the last four years has come in recent months. ”
(5 / x) pic.twitter.com/f9Bzzoy9A8
– Carl Quintanilla (@carlquintanilla) September 8, 2019
The markets experienced deep dives in the summer as Trump intensified his customs war with China, yet the Dow is up 42% since the 2016 presidential election. It remains to be seen whether the Volfefe index is effective, or will it go to the bizarre indexes category such as high heels or beer consumption.
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China will crumble & # 39; WHEN I WIN & # 39; trade war – Trump
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