A tweet can rock the market. Especially if it’s from the commander in Chief. While I’m not someone who agrees with the one sided communique our president has decided is his number one form of information dissemination, if you’re an investor, a common question you are going to ask yourself on outlier days is “what did he tweet now?”
If you’re like me, you have most likely an abundance of tech and social media exposure. I can’t blame you, so do all the major indices. It’s where the money is going. That is no fault to you. However, the man in charge has decided his number one agenda should be to punish the only vehicle he uses to talk to his base. I’d liken this to taking off the fan belt in my own car while driving down the freeway, then waiting patiently to be incinerated.
One thing that can be learned from the constant tweeting of market moving blurbs, is that they have been about evenly split between positive and negative news. Sure, he may be attacking all social media with an executive order, but not only is the legality of that order in question, but you can bet the companies with a combined market cap of more than the GDP of 120 countries is going to have a legal team who will fight.
While these things might be a real pain in the ass when they slap your portfolio with a -3% day and above, chances are, things will recover in a short time. The market is quick to forget these transgressions. And it is better to act on them in the form of buying a little extra when you can.