Is US President Donald Trump launching his own type of TACO?
In short, no; the acronym stands for ‘Trump always chickens out’ and was popularised by Wall Street to describe the way Trump resolved his ‘Liberation Day’ tariffs, either by striking a deal or unilaterally reversing them.
In financial markets, a TACO trade involves buying stocks cheaply after a Trump announcement pushes stocks lower, then selling them at a profit after the announced action is delayed, reduced or cancelled and the market rebounds.
The term recently returned in the context of Trump suggesting the war in the Middle East will be over soon, reassuring stock markets – but a TACO moment may still be out of reach.
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