Can I Profit Off Of Trump’s Tweets?

You’ve seen the Wolf of Wall Street, you got a “C” in Finance 101 and you downloaded Betterment after your significant other harassed you to “get your shit together.” You’re a day trader. You’re a Jim Cramer disciple. For fuck’s sake, you’re halfway through “4-hour Work Week.”

You are well on your way to making sure your children’s great grand children have a trust fund. You’ve scoured Motley Fool for all of the best advice. You dove head first into Morningstar research …

But you want more.

 

 

 

Like a TD Ameritrade commercial playing out in real life, you know that “opportunity is everywhere.”

What do Trump’s tweets have to do with my bottom line?

Trump’s twitter rants are aimed at so much more than the likes of Rosie O’Donnell, Megyn Kelly and other nasty women. Throughout his run to the White House and after his victory he (sometimes incoherently) rambled about American enterprises

Sometimes it was positive …

And sometimes, not-so-much …

It goes without saying, albeit scary as shit, that when the President of the United States says something, the markets react. When he talks about war, defense contractor stocks rise, when he talks about infrastructure, certain industrial stocks pop. So it’s no wonder that when Trump tweets about a company, there is money to be made.

For example, Trump (erroneously … seriously, he was reacting to news that had been announced a year prior) tweeted about Toyota moving its plant to Mexico, which resulted in the company losing $1.2 billion in market cap within minutes. Take a guess what time Trump fired up his computer …

 

SMH …

 

So markets are definitely reacting to Trump’s tweets, but what can your sorry ass do about it?

 

Show me the money …

Unfortunately for you, there is little opportunity for you to profit off of Trump’s internet ramblings. And here’s why: Wall Street will beat you to it. 

Even if you use apps like Trigger which specifically alerts you when Trump is on a belligerent tirade about capitalism, you still need to open your brokerage app, come to a conclusion about if the mention of the stock will have a direct impact on it’s price, decide whether the news is good or bad for the stock and submit your trade.

You know what happened in that time? Wall Street reacted, profited and gave you a proverbial middle finger before you could even get to the “Forgot My Password” screen on your Scottrade account.

So could you theoretically profit off of Donny Politics social media crusades? YES. Are the odds against you? You have a better chance of smoking a blunt with Tupac, Biggie and the Tooth Fairy. 

Stick to your day job, and investing in ETF’s and brands you’ve heard of, Bud Fox.