Robert Amstrong from Financial Times coined the TACO paradigm. The scheme is this : whenever President Trump announces something that causes markets to swoon, buy during the fainting spell… Wait for the bounce, then sell. It has worked for me with the Trump’s U-turn on tariffs with China.
Remember the day after Liberation Day ? When Trump saw that the US debt market was becoming more expensive because some Japanese (or Chinese ?) banks were selling securities, he put the brakes on his policy.
Investors are realizing that the US administration does not have a high tolerance for economic and market pressures and will be quick to back down when tariffs cause pain and inflation. The TACO scheme will enforce again with Mexico and Europe after the Agust, 1st. I am expecting that their banks, specially in Europe, will sell some US debt, too. It’s time to play the stock market, guys !
Stock market is dumb, it works and it’s a nice moment to make money on Trump’s inconstancy (it’s an euphemism for… whatever).
A golden time !