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American Focus > Blog > World News > Wall Street Investors Mock Trump With A Brutal 4-Letter Code Word
World News

Wall Street Investors Mock Trump With A Brutal 4-Letter Code Word

Last updated: May 29, 2025 2:25 am
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Wall Street Investors Mock Trump With A Brutal 4-Letter Code Word
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Wall Street investors have come up with a clever new strategy for betting against President Donald Trump, known as the “TACO” trade. This acronym stands for “Trump Always Chickens Out,” referring to the president’s habit of announcing tariffs that cause market turmoil, only to backtrack on them shortly after.

Financial Times commentator Robert Armstrong is credited with coining the term, which has gained traction in the investment community. Recently, Trump’s announcement of 50% tariffs on Europe sent indexes plummeting, only for him to delay the tariffs and spark a market rally days later.

This pattern has created a unique opportunity for investors to capitalize on Trump’s unpredictability. Ted Jenkin of Exit Stage Left Advisors explained that investors are buying stocks when they dip after bad news, anticipating that Trump will reverse course and drive up their value again.

University of Michigan economist Justin Wolfers noted that this phenomenon is unprecedented, with markets now actively betting on the president’s wavering decisions. The unpredictability of Trump’s trade policies has created a sense of “madness” in the financial world.

Armstrong, the originator of the TACO trade term, humorously remarked on the power of acronyms in capturing attention. As the investment community navigates this new landscape of political influence on the markets, the TACO trade serves as a reminder of the unique challenges and opportunities presented by Trump’s presidency.

See also  President Donald J. Trump Streamlines Nuclear Reactor Testing at the Department of Energy – The White House
TAGGED:4LetterbrutalCodeinvestorsMockStreetTrumpWallWord
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