Analysts Have a Few Problems With Trump ‘Chaos Trades’ Article
- Story suggests traders made billions front-running policy news
- Experts say that implication falls short of being proven
Donald Trump speaks at the White House on Oct. 11.
Photographer: Zach Gibson/BloombergThis article is for subscribers only.
While the idea Donald Trump’s White House might have leaked market-moving news isn’t crazy, a new magazine story suggesting traders made billions of dollars front-running geopolitical events failed to pass the smell test among Wall Street professionals.
Analysts and investors who spoke to Bloomberg News were mostly skeptical of a Vanity Fair article titled “The Fantastically Profitable Mystery of the Trump Chaos Trades” that raises the possibility traders did more than get lucky buying S&P 500 futures right before big market swings. While nothing is impossible, experts who examined the story said any implication that people traded on inside information fell short of being proven.