而① Although Trump's main base for expressing himself on social media may have shifted back from Twitter to his own platform Truth Social, his habit of "governing by Twitter" has evidently not changed; ② This has led many Wall Street institutions to register Truth Social accounts early around the election results, and their foresighted strategy of including it in their tracking models has not been in vain!
According to a report from Financial Link on November 27 (Editor: Xiaoxiang), even though the usa's president-elect Trump will not take office for nearly two months, he only needs to post two messages on social media to prompt leaders from around the world to take immediate action. The stock prices of usa auto manufacturers plummeted in a single day, non-usa currencies faced turbulence, and investors rushed to assess the potential economic impact...
During Trump's first term, whether day or night, this "understanding king" regularly posted his views on various situations and his "governing philosophy" via Twitter (now renamed as "X"), which became a norm.
And now, although Trump's main base for expressing himself on social media may have shifted back from Twitter to his own platform "Truth Social", his habit of "governing by Twitter" has evidently not changed.
This has caused many Wall Street institutions to lament that their early registration of Truth Social accounts around the election results and including it in their tracking strategy has not been in vain!
On Monday evening local time, Trump stated on the social media site Truth Social that he plans to impose more tariffs on china, Mexico, and Canada. This is his first specific threat to curb global trade flows since winning the election on November 5. Although the forex market reacted anxiously afterward, the large fluctuations in the market allowed some quick-moving institutional investors to reap rewards.
After the tariff news broke, many traders and analysts hurried back to their computers. This included Barclays strategist Erick Martinez Magana.
He has consistently advised clients to consider going long on the dollar and shorting the Mexican peso. Magana stated that Trump is serious about changing immigration and tariff policies, with Mexico being the direct target. He expects the peso to weaken further, dropping to 21.50 pesos per dollar.
“Trump's posts on social media on Monday resulted in a surge of the dollar, which felt familiar, as muscle memory was at play,” said Nick Twidale, a veteran forex trader with 26 years of experience at AT Global Markets.
Twidale pointed out the silver lining is that there are many opportunities for profit during Trump's next four years in office. Although Twidale was flustered by Trump's posts and even spilled coffee on his keyboard, he still managed to profit from short bets on the Mexican peso and australian dollar.
Shawn Oh, a stocks trader at NH Investment & Securities Ltd in south korea, pointed out that the market fluctuated wildly after Trump's post on Truth Social, reminding us of how much impact his words can have and the wide reach they possess. Trump's round-the-clock posts on social media during his first term often triggered sudden market fluctuations, disrupting the work and sleep of global investors.
Oh stated, “This is typical Trump style. While it is reassuring to have Basant serving as Treasury Secretary -- I believe people would expect Trump to be more moderate than during his first term, but there will still be plenty of surprises.”
In fact, as early as the beginning of this month when Trump won the usa election, Wall Street witnessed a wave of registrations for Truth Social. Many on Wall Street are acutely aware that, whether they like it or not, Trump's incessant tweets will become essential reading for them in their daily work ahead.
According to statistics, even when limited to discussing stock market fluctuations, Trump tweeted at least hundreds of times during his first term -- common phrases included references to the “Dow,” “Nasdaq,” “bull market,” and “profits.” In contrast, current President Biden, like previous presidents, has only mentioned stock market performance a few times on social media, including when the s&p 500 index first broke 5000 points this year.
The CEO of Straits Investment Management stated, “It will be crucial to closely follow Trump's posts from here on. Given his long-standing tradition of using social media to convey unfiltered thoughts and policy intentions, we can expect similar patterns to emerge in the future.”
Editor / jayden
