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Wall Street investors have spotted one of president Donald Trump's tendencies and have started betting against him.
They've even come up with a derogatory term – "TACO," and acronym for "Trump Always Chickens Out" – for the president's erratic handling of his on-again, off-again tariffs, because they've noticed his tendency to announce punishing duties that send markets into the tank, only to back off a short time later and goose the market, reported HuffPost.
"The recent rally has a lot to do with markets realizing that the U.S. administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,"
wrote Financial Times commentator Robert Armstrong, who is credited with coining the term earlier this month.
"This is the Taco theory: Trump Always Chickens Out."
“Under no previous presidency did we have active markets betting on the president’s resolve,”
said University of Michigan economist Justin Wolfers.
“There was no BACO trade, no CACO trade – nothing. It was always taken as a given that when the president spoke on Monday, he would likely still mean it on Tuesday. 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.”
#Trump #markets
