JPMorgan Chase creates 'Volfefe Index' to measure how Trump's tweets impact market
Belpointe Chief Strategist David Nelson on the Federal Reserve, U.S. trade tensions with China and the state of the jobs market.
JPMorgan Chase announced on Sunday its creation of the so-called "Volfefe Index" to measure how President Donald Trump's tweets impact rates volatility.
"The president has produced more than 10,000 tweets since taking office, at a pace that has accelerated in recent months ... The subject of these tweets has increasingly turned toward market-moving topics, most prominently trade and monetary policy," JPMorgan Chase said in a statement.
"And we find strong evidence that tweets have increasingly moved U.S. rates markets immediately after publication," the company continued.
The name is a mashup of the words volatility and "covfefe," an apparent typo the president tweeted in 2017 that caused a stir.
Trump's recent tweets have covered everything from criticism of the Federal Reserve to American auto manufacturing. JPMorgan Chase said they have learned how to spot the president's "market-moving tweets" for the index.
"[W]e fold this index into our volatility fair value model, to demonstrate the president's remarks on this social media platform has played a statistically significant role in elevating implied volatility," the company said.