On TACO trades, stock market vigilantes, Trump puts ... whatever you wanna call it 🌮

There's a limit to what the investor class will tolerate 🛑

Tariff escalations haven’t lasted very long once the stock market tanked. (Source: Deutsche Bank)

People have been talking about the “TACO” trade, a concept coined by the Financial Times’ Robert Armstrong.

Short for “Trump Always Chickens Out,” TACO explains how markets fall after President Trump announces unfavorable economic policies and then rally after he relents on those policies.

The wording is cheeky. And unsurprisingly, it elicited an unfavorable response from Trump.

But the basic concept isn’t new.