Sunday, 20 August 2017

Markets are always right

After President Trump had took place at the White House, he began to use social networks in the aim to create a negative impact on some companies listed on the stock markets. Unfortunately, he was able to affect the markets by leaving statements through twitter.
For instance, last year on 23rd December Lockeed Martin's stocks fell by 5 per cent  after the U.S. President had written a tweet about the cost of the F-35 jet program. And when President Trump wrote that  Obama's Air Force One 747 was too expensive, "Boeing Co" lost about two Billion of its capitalization on the stock market. As many of the Presidents before him, Obama had maden numerous comments about his affinity for  Air Force One.
On the contrary,  since this month investors haven't been taking seriously Trump's statements left on social networks. Last Wednesday, after the President had written bad news about Amazon.com, the stocks of the most valuable retailer in the U.S. surprisingly rose. it seems that Trump's tweets don't affect the markets any more.
As it is known, most investors, such as hedge fund money managers, are analyzing all the time world news. In this perspective, since U.S. President was elected in 2016 they have been thinking what Trump's tweets mean for the market. At the moment, Donald Trump's statements are not able to influence the markets, as we have seen with regard to invocation of "fire and fury" in response to North Korea's nuclear weapon program. It's easy to see how the markets ignore President Trump's statements. 

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