President Donald Trump loves Twitter, and every tweet he sends out can rock the world and shift markets. His latest ourbust of ALL CAPS RAGE directed at Iran is another instance of Trump tweeting first, thinking last.
But are markets beginning to ignore what Trump writes on Twitter?
From CNBC:
The impact of a Donald Trump tweet on the value of assets might be losing its punch, according to a leading economist.
The president has mastered the use of the microblogging site to set the news agenda and pump out headline-style messages to his 53 million followers.
Trump’s Twitter account has rattled markets with nuclear threats to North Korea, a promise to enforce tariffs on a huge amount of global trade, as well as warnings over the U.S.’ relationships with countries generally considered allies.
The occasional call for the U.S. and other countries to build infrastructure and raise defense spending has also sent asset managers scurrying to revaluate portfolios.
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Paul Donovan, the global chief economist for Swiss firm UBS Wealth Management, said in a note Monday that while the tweet over Iran may be serious, markets are beginning to look through the president’s online activity.
“After Trump’s tweeting threats against North Korea and the fact that North Korea still seems to be carrying on with its nuclear program unimpeded, it would appear that markets are not inclined to take Trump’s tweets seriously,” he said.
It seems like the market is still taking Trump seriously on the social media outlet. Amazon shares tumbled two percent on Monday after President Trump brought up anti-trust concerns between The Washington Post and Amazon.
Trump is erratic, so it’s difficult to determine if some tweets are genuine or just a method to his madness.
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