JPMorgan’s Volfefe Index, built from a rolling one-month sum of inferred probability that each tweet is market moving. Source: Bloomberg News

The President of the United States is active on the Social Media Platform Twitter. He often tweets about his likes and dislikes. This is a normal behavior for an american citizen, but when you are the President and a political figure, even tweets have sway with the demographics. As a result of this, the Treasury yields are significantly impacted by the President's tweets. This is a superb index and we should have something similar in Nepal for our Ministers, politicians and government officials.As seen above, the impact of President Trump's tweets is something that has had significant sway on the Treasury yields. The graphs correlate from his rants against China, tweets regarding tariffs, and even tweets regarding the border wall. Each of his tweets has a cascading effect on the market.Similar effect can be seen in Nepal's market whenever the Honorable Finance Minister mentions any of his educated opinions. This is not only limited to the Finance Minister, the spending habits of youths was impacted recently when the Honorable Communication Minister Gokul Baskota said "Constitution day is not for dating and partying." Low and behold, people are making plans to party especially on the given holiday.The lack of data on this is exactly the reason, the writer of this article urges statisticians and economists to develop a "". The purpose of this Index would be to understand the wider impact of statements made (rationally or irrationally) by individuals in power. This index would then help investors and share holders in the Nepali market make rational decisions based on () irrational statements.One can never overstate the value of the word of Nepali politicians. Rational thoughts are always found in every corner in Nepal's politics. As wide far and as wide, the effects of the Nepali politics have on every aspects of Nepali society, we need to be vigilant in understanding the impact of these effects. For non investors, it may seem like these aspects do not affect their daily lives, but they often do.Imagine a politician makes a statement about how cows in the Hilly region are better than cows from Terai, because of some rational thought of loyalty to his/her constituent. The protest from Terai and significant increase in price of milk in Nepal is going to be the exact consequence of this kind of rational exercise. Thus, it is imperative for us to devise a "".It is not a far fetched reaction made by the public, the writer clearly remembers the impact of a famous Indian actor's words on Nepal that caused a lot of destruction of property. That was before the advent of social media, now investors and consumers must stay at the barrel of the gun because the risk of controversial statements from the ever growing gallery of politicians may have significant impact on their finances. One can only pray to the gods of numbers and statistics in these troubling times.Follow us on Facebook Follow us on Instagram Follow us on Twitter