Unlike any president who has come before, President Trump is very active on social media, using his Twitter account to share his views on a wide variety of subjects, including publicly-traded companies. Should investors be worried about his Twitter activities?

FINANCIAL LESSON

TWITTER IS NOT A GOOD BAROMETER OF STOCK MARKET MOVEMENTS

Is there a measurable Trump tweet effect on stocks? Possibly, in the very short term - but that time frame does not concern us at Anglia Advisors. While positive or negative publicity can always affect a stock’s price, markets are affected by many such variables every day. The president’s tweets might cause short term market volatility, but much of that may be attributable to the headline effect of media coverage.

Over the long term, the stock market tends to mirror underlying economic fundamentals; however, in the short term, markets can turn on a dime, reacting unpredictably to a wide variety of events, including a tweet, remark, news event or media headline. Keep it in perspective, the President's tweeting is only one of a multitude of short term factors that buffet stocks all day, every day.

As investors as opposed to traders, what happens in the seconds, minutes, hours or even days following a presidential tweet is completely irrelvant to us. You just need to focus on your own goals and maintaining a solid asset allocation strategy with the guidance of your CERTIFIED FINANCIAL PLANNER™ for the years and decades that follow and disregard the market's "noise".

Bottom Line: Don’t get your stock market tips from Twitter .. from President Trump or anyone else!

Know anyone who worries that President Trump's tweets might affect their investments? Share this page with them and help keep them informed.

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