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Home / Business / JPMorgan has created an index to track the consequences of Trump's tweets to investors

JPMorgan has created an index to track the consequences of Trump's tweets to investors



Now analysts at JPMorgan have created an index to track the effect of Trump's tweets on US interest rates. Its name? The "Wolf Fairy Index", an apparent mashup of volatility and a certain "covf beef" tweet that launched a social media frenzy back in 2017.

Analysts found that Trump's tweets have significantly increased volatility. They say the frequency of Trump's marketing tweets "ballooned" in August, and that US rates markets are getting more attention. This drives the need for a model to detect market-moving tweets and track results, they said.

"The theme of these tweets has increasingly turned to market-moving themes, most prominent trading and monetary policy," the analysts said. "And we find strong evidence that tweets have increasingly moved the US stock markets immediately after publication."

JPMorgan does not include specific Trump tweets in its report introducing the index, but does identify a series of trigger words for markets. These include "China", "billions" and "products."

The bank admits that the model is "barely a tweet savant" ̵

1; but maintains that the results it provides are "firmly statistically significant."


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