TACO trade is a term coined by Robert Armstrong, a columnist for the Financial Times, to describe an investment strategy followed by some investors amidst fluctuating tariff policies.

♦️ Trump announces hefty tariffs:

♦️ Since taking office, President Donald Trump has imposed hefty tariffs on imported products, especially from China.

♦️ Market declines: These announcements negatively impacted financial markets and caused stock prices to drop.

♦️ Investors bet: Some investors were buying shares in companies whose values were declining due to these tariffs.

Why? Because they expected Trump to backtrack on his decision regarding these tariffs.

♦️ Market rebounds: When Trump backtracks, the markets recover, and the prices of the shares they bought rise, resulting in profits.

♦️ What does the acronym "TACO" stand for?

♦️ The acronym is: "Trump Always Chickens Out."

♦️ Why did Trump's policies cause "TACO trade"?

♦️ When Trump imposes tariffs and then partially or fully retracts them. This volatility in tariff policies created opportunities for investors who were betting on his backtracking.

♦️ Spread of the term: