Yesterday the Wall Street Journal blared the news that Donald Trump’s comments on the dollar being too strong had sent the dollar “reeling.” I suggested we might want to wait a few days before buying into this, but it turns out I was wrong. We only had to wait one day:
This follows the usual formula: (a) Trump says something, (b) a related financial index reacts instantly, and (c) by the next day everything is back to normal. I gather that there are folks on Wall Street who are writing algorithms to make money off this dynamic, but it’s unclear how long that can last. I mean, how many times can this happen before everyone realizes that Trump’s blather doesn’t really mean anything?