"Markets are not reacting to information, they are generally reacting to social media posts and headlines—even if those posts or headlines are fake news or contradictory."
"The absence of verifiable facts is already complicating economic assessments, for instance, it is difficult to assess how much Dubai might have to spend repairing war damage."
Wall Street's recent optimism about resolving hostilities with Iran stems from President Trump's statements, despite Tehran's denial of dialogue. Investors are increasingly influenced by social media posts from the Oval Office, leading to market reactions based on headlines rather than verified information. UBS's chief economist Paul Donovan noted that this trend complicates economic assessments, such as estimating war damage in Dubai. The expectation of rapid updates in foreign policy under Trump has shifted investor behavior significantly.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]