Jump to content

Volfefe index: Difference between revisions

Edit links
From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
Line 10: Line 10:


==Methods==
==Methods==
In forming the basis of the methodology behind Volfefe, JPMorgan Chase used software to analyse the corpus of Trump's tweets.<ref name=cnn /><ref name=reuters /><ref name=telegraph>{{citation|url=https://www.telegraph.co.uk/business/2019/09/10/volfefe-index-aims-track-just-donald-trumps-tweets-move-markets/|work=[[The Daily Telegraph]]|access-date=September 10, 2019|date=September 10, 2019|title=The Volfefe Index aims to track just how Donald Trump’s tweets move markets|first=Louis|last=Ashworth}}</ref> Their analysts deteremined that there were direct correlations between tweets and the market, notably when the tweet specifically references financial matters including the [[US Federal Reserve]].<ref name="2019-09-10_ABC"/><ref name=newburger /><ref name=ap /> The tweets issued during the working day of the [[New York Stock Exchange]] were more likely to cause a change in market sentiment, however, it was noted that the tweets can come at any time of day and thus have an effect on markets around the world.<ref name="2019-09-10_ABC"/><ref name=newburger /><ref name=ap /> Key words in tweets include "[[China]]", "[[billion]]", "products", "[[Democratic Party (United States)|Democrats]]", "great", "dollars", "[[tariff]]s" and "trade".<ref name="2019-09-10_ABC">{{citation|url=https://www.abc.net.au/news/2019-09-10/trump-volfefe-index/11495726|title= Donald Trump's impact on market volatility tracked by new JP Morgan 'Volfefe' index|first= David|last=Chau|work= [[ABC News Online]]|date=September 10, 2019|access-date=September 10, 2019}}</ref><ref name=newburger>{{citation|url=https://www.cnbc.com/2019/09/08/donald-trump-is-tweeting-more-and-its-impacting-the-bond-market.html|access-date=September 10, 2019|work=[[CNBC]]|title=JP Morgan has created an index to track the effect of Trump’s tweets on financial markets: ‘Volfefe index’|date=September 8, 2019|first=Emma|last=Newburger}}</ref><ref name=ap>{{citation|url=https://finance.yahoo.com/news/much-trump-tweets-swing-market-142834256.html|access-date=September 10, 2019|work=[[Yahoo! Finance]]|agency=[[Associated Press]]|title=How much do Trump tweets swing the market? Check 'Volfefe'|date=September 9, 2019}}</ref>
In forming the basis of the methodology behind Volfefe, JPMorgan Chase used software to analyse the corpus of Trump's tweets.<ref name=cnn /><ref name=marketwatch>{{citation|url=https://www.marketwatch.com/story/are-trump-tweets-influencing-bond-volatility-jp-morgans-volfefe-index-aims-to-find-out-2019-09-09|access-date=September 10, 2019|work=[[MarketWatch]]|date=September 9, 2019|title=J.P. Morgan made a ‘Volfefe’ index to track how Trump tweets move the bond market — here’s what it shows|first=Barbara|last=Kollmeyer}}</ref><ref name=telegraph>{{citation|url=https://www.telegraph.co.uk/business/2019/09/10/volfefe-index-aims-track-just-donald-trumps-tweets-move-markets/|work=[[The Daily Telegraph]]|access-date=September 10, 2019|date=September 10, 2019|title=The Volfefe Index aims to track just how Donald Trump’s tweets move markets|first=Louis|last=Ashworth}}</ref> Their analysts deteremined that there were direct correlations between tweets and the market, notably when the tweet specifically references financial matters including the [[US Federal Reserve]].<ref name="2019-09-10_ABC"/><ref name=newburger /><ref name=ap /> The tweets issued during the working day of the [[New York Stock Exchange]] were more likely to cause a change in market sentiment, however, it was noted that the tweets can come at any time of day and thus have an effect on markets around the world.<ref name="2019-09-10_ABC"/><ref name=newburger /><ref name=ap /> Key words in tweets include "[[China]]", "[[billion]]", "products", "[[Democratic Party (United States)|Democrats]]", "great", "dollars", "[[tariff]]s" and "trade".<ref name="2019-09-10_ABC">{{citation|url=https://www.abc.net.au/news/2019-09-10/trump-volfefe-index/11495726|title= Donald Trump's impact on market volatility tracked by new JP Morgan 'Volfefe' index|first= David|last=Chau|work= [[ABC News Online]]|date=September 10, 2019|access-date=September 10, 2019}}</ref><ref name=newburger>{{citation|url=https://www.cnbc.com/2019/09/08/donald-trump-is-tweeting-more-and-its-impacting-the-bond-market.html|access-date=September 10, 2019|work=[[CNBC]]|title=JP Morgan has created an index to track the effect of Trump’s tweets on financial markets: ‘Volfefe index’|date=September 8, 2019|first=Emma|last=Newburger}}</ref><ref name=ap>{{citation|url=https://finance.yahoo.com/news/much-trump-tweets-swing-market-142834256.html|access-date=September 10, 2019|work=[[Yahoo! Finance]]|agency=[[Associated Press]]|title=How much do Trump tweets swing the market? Check 'Volfefe'|date=September 9, 2019}}</ref>


==Analysis==
==Analysis==

Revision as of 21:04, 10 September 2019

The Volfefe Index is a stock market index of volatility in market sentiment for US Treasury bonds caused by tweets by President Donald Trump.[1][2][3]

Bloomberg News observed Volfefe was created due to the statistical significance of Trump tweets on bond prices.[1] ABC News Online posited Volfefe could help analyze interest rate risk in the face of "unpredictable" activity on social media by Trump.[2]

Etymology

The name "Volfefe" references the “covfefe” tweet by Trump.[3][4][5]

Creation

Volfefe was launched by JPMorgan Chase on September 9, 2019.[1][3][4]

Methods

In forming the basis of the methodology behind Volfefe, JPMorgan Chase used software to analyse the corpus of Trump's tweets.[5][6][7] Their analysts deteremined that there were direct correlations between tweets and the market, notably when the tweet specifically references financial matters including the US Federal Reserve.[2][8][9] The tweets issued during the working day of the New York Stock Exchange were more likely to cause a change in market sentiment, however, it was noted that the tweets can come at any time of day and thus have an effect on markets around the world.[2][8][9] Key words in tweets include "China", "billion", "products", "Democrats", "great", "dollars", "tariffs" and "trade".[2][8][9]

Analysis

Bloomberg News noted, "JPMorgan’s 'Volfefe Index,' named after Trump’s mysterious covfefe tweet from May 2017, suggests that the president’s electronic musings are having a statistically significant impact on Treasury yields."[1]

ABC News Online commented JP Morgan created Volfefe, "to measure how much impact Mr Trump's unpredictable tweets have on US interest rates".[2]

See also

References

  1. ^ a b c d Alloway, Tracy (September 9, 2019), "JPMorgan Creates 'Volfefe' Index to Track Trump Tweet Impact", Bloomberg News, retrieved September 10, 2019
  2. ^ a b c d e f Chau, David (September 10, 2019), "Donald Trump's impact on market volatility tracked by new JP Morgan 'Volfefe' index", ABC News Online, retrieved September 10, 2019
  3. ^ a b c Ahmed, Saqib Iqbal (September 9, 2019), "'Volfefe': a volatility index for the Trump era", Reuters, retrieved September 10, 2019
  4. ^ a b Gibson, Kate (September 9, 2019), "'Volfefe index' tracks market impact of Trump's tweets", CBS News, retrieved September 10, 2019
  5. ^ a b Horowitz, Julia (September 9, 2019), "JPMorgan has created a 'Volfefe Index' to track how Trump's tweets move markets", CNN, retrieved September 9, 2019
  6. ^ Kollmeyer, Barbara (September 9, 2019), "J.P. Morgan made a 'Volfefe' index to track how Trump tweets move the bond market — here's what it shows", MarketWatch, retrieved September 10, 2019
  7. ^ Ashworth, Louis (September 10, 2019), "The Volfefe Index aims to track just how Donald Trump's tweets move markets", The Daily Telegraph, retrieved September 10, 2019
  8. ^ a b c Newburger, Emma (September 8, 2019), "JP Morgan has created an index to track the effect of Trump's tweets on financial markets: 'Volfefe index'", CNBC, retrieved September 10, 2019
  9. ^ a b c "How much do Trump tweets swing the market? Check 'Volfefe'", Yahoo! Finance, Associated Press, September 9, 2019, retrieved September 10, 2019
Wikimedia Commons has media related to Donald Trump and Twitter.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Volfefe_index&oldid=915037215"