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As the poster doesn't this gives Trump the power to manipulate markets with nothing more than a tweet? You could argue he already has this power, but before th
by alex- 10y ago
As the poster doesn't this gives Trump the power to manipulate markets with nothing more than a tweet?
You could argue he already has this power, but before the message needed to resonate with a large collective of people. Any public figure (like Warren Buffet, etc) can express an opinion that might effect the stock they are commenting on.
However as this group of people automate trades on only the contents of his tweets (and not say the contents of the tweet as well as past company performance, current POTUS approval ratings, dividend plans etc) he gains a scary amount of control over the markets.
To put another way. The only people who know what he will tweet earlier than these bots are Trump and maybe a select group of people he tells before hand.
- drak0n1c 10y agoPoliticians impacting the stock market is nothing new. Pipeline and coal companies plummeted with Obama's executive orders, and the executive branch DOJ created a huge drop in prison stocks with what was effectively an indirect tweet. Solar stocks zig zagged according to the latest Solyndra and renewables subsidy activity. The only thing new is Twitter as a more easily machine-readable mouthpiece. Congress actually gets a free pass on buying and selling stocks with insider information and many have done so for decades: http://www.cbsnews.com/news/congress-trading-stock-on-inside-information/ http://www.cbsnews.com/news/congress-trading-stock-on-inside...
- dlgeek 10y agoI think what's novel/different here is the examples you all cited are examples of market reaction to government action, compared to, let's call it "executive sentiment". The distinction here is people are anticipating future actions based a politician expressing feelings rather than taking action.