I had planned to write this post last Sunday, but never got to it. And, to be honest, it’s just not that important – the subject being Trump Media & Technology Group (DJT). Professional investors will only short DJT, and that’s always a chancy strategy, since losses are unlimited and gains are limited. That leaves wanna-be professionals and amateurs, and at this juncture, a month history of DJT’s price should be instructive.
A 36% drop in value of a company with only Truth Social, Truth API, and President Trump’s mouth to offer should be discouraging even when the market cap is $1.5B. Over the same period, memecoin $TRUMP dropped more than 22%.
As I noted here, taking financial instruments as a proxy for political prospects is a chancy business. But if I had to evaluate these, I’d say the lack of utility in the memecoin is more of a pure expression of such a political prospect, so that 22% drop must be dismaying to political partisans, if they take them as said proxies.
At this point, I’d hope that both financial instruments are only held by investors, a term I use very loosely, hoping to score political points and favors from the current President, such as corrupt contracts, pardons, and the like.
This is all a sordid business, I fear. No one should be surprised.
