TACO Time Is Over for Stocks |
Investors have grown accustomed to the idea that Donald Trump-induced shocks rarely last long, because, as the popular TACO acronym tells us, “Trump Always Chickens Out.” But the president’s decision to join Israel in starting a war with Iran has opened a geopolitical and macroeconomic Pandora’s box that may make a tidy walk-back impossible. Under the surface, financial markets are starting to take note.
The TACO regime in US stocks — in which every selloff was a buying opportunity — may be officially over.