President Donald Trump's tweeting habits have long been speculated about as he moved markets, but now there is a way he would probably measure it, with the kind assistance of J.P. Morgan. And it's called Volfefe, after the mysterious "covfefe."
The Behemoth financial company and the provider of all indexes is urging the US president to increase the number of tweets in recent months, which has affected the markets. And any tweet about the Federal Reserve, China and trade tensions is seen as "affecting short-term economic performance" writes the authors of JP Morgan's report.
With the new index named after Trump's mysterious "covfefe" tweet, analysts have tried to explain and show affect 2 year and 5 year treasures.
The company report stated that about 146 tweets of 4000 authentic messages during the 2018 market hours to date have an impact on the markets. Most often they included words such as "China", "billion" and "products" and received favorable responses.
The report delves into specific details of Trump's tweeting habits: he has an average of 10 tweets per day, and produces more than 10,000 since taking office in 2017. Most of the tweets come between noon and 2:00 p.m., the report said, noting that around 3:00 PM could create problems for US market prices . The survey also suggests that the president sleeps between 5:00 and 10:00
Trump has been averaging 10+ tweets a day since early 2016. "However, since the end of 2018, activity has grown significantly. The highest volume of tweets in the last four years has actually been reached in recent months. ”
(5 / x) pic.twitter.com/f9Bzzoy9A8
– Carl Quintanilla (@carlquintanilla) September 8, 2019
Markets experienced deep floods in the summer when Trump its tariff war with China, but the Dow has grown by 42% since the 2016 presidential election. It remains to be seen whether the Volfefe Index is effective or will move into the category of fanciful indices such as high heels or beer consumption.
Do you think your friends would be interested? Share this story!