In recent weeks, the phrase “TACO” has been circulating in financial circles. No, investors are not talking about the Mexican delicacy. “TACO” is actually an acronym for “Trump Always Chickens Out,” a phrase coined by Financial Times columnist Robert Armstrong.
According to Armstrong, many investors are using “TACO” as a strategy. With the assumption that Trump will reverse course on tariffs (or “chicken out”), they buy into the market each time new tariffs are announced. They are betting that stocks will rally if he later changes his stance on a particular levy.
