If I'd just been grazed by a bullet, I would have been crawling away praying to get away.
Posted on 05/28/2025 10:56:26 AM PDT by Red Badger
Wall Street traders have developed a biting new acronym for a strategy that’s become surprisingly lucrative for President Donald Trump’s whiplash-inducing trade policy: TACO – “Trump Always Chickens Out.”
Reportedly first coined by Financial Times columnist Robert Armstrong, the term has quickly gained traction among investors who are profiting from what they say is a predictable pattern: Trump threatens steep tariffs, the markets plunge, and days later he backs off in a way that prompts a rebound.
The latest example came over the weekend. On Friday, Trump sent markets reeling by announcing sweeping 50% tariffs on European imports. But by Sunday, the White House abruptly paused the move, citing a fresh round of trade talks. When the markets reopened on Tuesday, stocks surged.
The TACO trade strategy is reportedly being openly embraced by some investors, according to the New York Post.
“Once he delivers bad news, investors are buying those stocks when they are beaten down waiting for him to chicken out and watching those stocks rebound in value,” said Ted Jenkin, president of Exit Stage Left Advisors, in an interview with the outlet.
Economists say this type of market behavior, explicitly betting against a sitting president’s follow-through, is unprecedented.
University of Michigan economist Justin Wolfers told Barron’s on Tuesday that “there was no BACO trade” – referring to former President Joe Biden – and “no CACO trade” referring to former President Bill Clinton.
“It was always taken as a given that when the president spoke on Monday, he would likely still mean it on Tuesday,” he added. “That’s no longer true. But what’s really hard is that it’s not even obvious when it’ll be true, and when it won’t be. Madness.”
They need to read his book. Ask for more than you want and you will get the deal you want.
If you listen to Armstrong you’re an idiot.
More like Wall Street disappointed that their chicken little horse poop turned out to be more of the usual nonsensical panic.
Sure they have. Sounds more like Armstrong is trying to coin a gotcha catchphrase. Give it a rest.
The same ones who scream “NO NO TARIFFS THEY ARE GONNA DESTROY THE ECONOMY” are the same ones who call Trump a chicken for making deals with other countries
Ideally, they would learn and not panic so much, but maybe they like the money-making strategy and purposely use it. Hard to believe there are so many traitors who don’t care about our country.
So if they are goading him, will they be happier if he sticks to ‘uuuuuge tariffs and brings the economy to a halt?
Be careful what you wish for, Wall St.
They apparently figured out his pattern without reading his book. And the problem with it being a pattern is that the strategy quickly loses effectiveness because everyone learns to ignore your first position. Just wait, and it will change.
This little piece of info totally ignores the possibility that the EU was suddenly in the mood to 'Let's Make A Deal!'.............
Trump responds with a four-letter code of his own: “FAFO”.
DJIA is within 2800, NASDAQ is within 1000, and S&P500 is within 500 points of their all-time highs... and each has recently climbed that much within 3 weeks or less.
DJIA up 2484 (APR 22 - MAY 6)
NASDAQ up 1316 (MAY 8 - 14)
S&P500 up 599 (APR 22 - MAY 12)
June could be a very good month!!
The stock market is largely about investor sentiment over real value. I’ve recently got into using this as a deciding factor on the ups and downs of the market, plus my affinity for high tech, AI, quantum computing, EV and battery technologies and how they may be combined. It’s really easy to buy on the dips of political effects on the market and watch things bounce back. I expect we will see lots of dips during Trump 2.0, and I’m loving the fun of watching it.
Not to be confused with Dr. Jill’s Breakfast Tacos.
If I'd just been grazed by a bullet, I would have been crawling away praying to get away.
It will change and always in our favor.
No, it won’t.
Yes, it will.
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