JPMorgan Chases analysis team, led by analysts Josh Younger and Unier Salem, believes that in response to Trumps tweets, price fluctuations in a large number of assets have been increasingly affected by Trumps tweets, from a single stock to a macro product.
The analysis team said they found that the Volfefe index could explain the measurable part of implied volatility fluctuations. This is particularly evident at the shorter end of the curve, where two-year and five-year interest rates are more affected than 10-year bonds.
Similarly, a report published last week by Bank of America Merrill Lynch analysts concluded that on days when Trump tweeted relatively frequently, the average return tended to be negative 9 basis points. On average, Trump will get a positive return of five basis points on fewer days of tweeting.
Volfefefefe got its name from a mysterious tweet by Trump, Covfefefefe. So far, there is no clear definition of this word. According to the Global Times on May 31, 2017, after being widely disseminated, Trump deleted the Covfefefefefefefe tweet and sent it saying, Who can guess the true meaning ofcovfefefefefe? Have fun!
Source: Responsible Editor of 21st Century Economic Report: Yang Bin_NF4368