The TACO trade and the philosophy behind it are making waves across the financial world after a journalist asked President Donald Trump if he knew what it meant.
The New Trade in Town: TACO
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First described by Financial Times journalist Robert Armstrong, TACO stands for “Trump Always Chickens Out,” meaning that he uses big announcements, like tariffs and taxes, as a negotiation weapon without having the intention to go all the way. The hypothesis is giving way to all sorts of market movements derived from Trump’s decisions, with traders seeking to profit from these opportunities. Trump outright denied these allegations, stating that he was considered too tough instead, with the criticized decisions being part of ongoing negotiations.
