TACO trade: Investors banking on Trump not following through on his threats
Quick Insights
The Bottom Line
Investors are betting President Trump will not follow through on threats, influencing market stability.
How This Affects You
This investment strategy, called "TACO trade," suggests market volatility may arise from President Trump's rhetoric but could stabilize if threats subside.
AI Summary
Investors are banking on President Trump not following through on his threats, a strategy dubbed the "TACO trade" by Robert Armstrong, U.S. financial commentator for the Financial Times. This strategy, where TACO stands for "Trump always chickens out," involves investors buying when markets dip due to presidential threats and selling when those threats subside. The Dow surged over 1,000 points after President Trump backed off his threat to attack Iran and agreed to a two-week ceasefire. This market reaction exemplifies the "TACO trade" as investors anticipate the President's eventual lack of action despite initial aggressive rhetoric. Robert Armstrong discussed this phenomenon on CBS News.
Following this story?
Get notified when new coverage appears
This article is part of a story we're tracking:
Trump's Influence on US Politics and Foreign Policy
Former President Donald Trump continues to exert significant influence on US politics, from taunting foreign leaders and shaping primary elections to making controversial statements on immigration and foreign policy, including his stance on the ongoing Iran conflict.
Trump's Influence on US Politics and Elections
Former President Donald Trump continues to exert significant influence over US politics, from taunting political rivals and making policy demands to impacting primary elections and facing legal challenges. His statements and actions are shaping ongoing debates and future electoral contests.
US Political Landscape: Trump's Influence and Key Elections
The US political scene is heavily influenced by former President Donald Trump, who continues to endorse candidates and shape party dynamics. Key primary races and special elections are underway, revealing shifts in voter sentiment and ongoing debates within both major parties.
Trump's Political Influence and 2025 Agenda
Former President Trump continues to exert significant influence over the Republican party and national politics, actively campaigning against GOP opponents, pushing for legislative changes like the SAVE America Act, and shaping the narrative around the economy and ongoing conflicts. His administration's past actions, such as the Global Entry program restoration and DOJ policies, are also under scrutiny.
US Political Landscape and Elections
The US political landscape is marked by ongoing electoral contests, including special elections and primary races, and debates over election integrity and voting rights. Democrats have seen some successes in flipping seats, while Republicans are strategizing for future elections. Issues like redistricting, voter confidence, and the role of federal agencies in elections are prominent.
Trump's Influence on Republican Primaries and Policy
Former President Donald Trump is actively engaging in Republican primary races, notably campaigning against incumbent GOP Representative Thomas Massie in Kentucky. He is also pushing for legislative changes like the SAVE America Act, though facing resistance from within his own party.
Trump's Influence on Republican Party and 2024 Elections
Former President Trump continues to exert significant influence over the Republican Party, impacting legislative priorities, endorsements, and internal party dynamics ahead of the 2024 elections. His calls for specific legislation and criticism of GOP members highlight ongoing divisions.
Trump's Influence on Republican Party and 2024 Election
Former President Donald Trump continues to exert significant influence over the Republican Party, impacting legislative efforts, primary challenges, and the national political discourse. His focus on the 2020 election and specific policy stances are shaping the GOP's agenda.
Trump's Influence on Republican Politics and Endorsements
Former President Trump continues to exert significant influence over the Republican party, making endorsements, criticizing opponents, and pushing for specific legislation. His actions are shaping primary races and legislative priorities, often leading to internal party conflicts.
Trump's Influence on Republican Party and Policy
Former President Trump continues to exert significant influence over the Republican Party, endorsing candidates, criticizing opponents, and pushing for specific legislative agendas. His actions are shaping primary races, trade policy, and legislative priorities within Congress.
Trump's Influence on Republican Politics and Endorsements
Former President Trump continues to exert significant influence over the Republican party, issuing endorsements, criticizing opponents, and leveraging his support to push legislative agendas, particularly impacting congressional races and policy debates.
Trump's Political Influence and Endorsements
Former President Trump continues to exert significant influence over the Republican party, issuing endorsements, criticizing opponents, and pushing his legislative agenda. His actions are shaping primary races and national policy debates, particularly regarding the 'SAVE Act' and trade.
Trump's Influence on Republican Party and 2024 Election
Former President Donald Trump continues to exert significant influence over the Republican Party, endorsing candidates, criticizing opponents, and pushing legislative agendas. His actions are shaping primary races and national policy debates, particularly concerning election integrity and trade.
Trump's Political Influence and Endorsements
Former President Trump continues to exert significant influence within the Republican party, endorsing candidates and criticizing opponents. His actions are shaping primary races and legislative debates, particularly concerning the 'SAVE America Act'.
Trump's Influence on Republican Party and 2024 Election
Donald Trump continues to exert significant influence over the Republican Party, endorsing candidates and criticizing those who oppose him. His focus on the 'SAVE Act' and his stance on mail-in voting are shaping political discourse ahead of the 2024 elections.
Trump's Influence on Republican Politics and Endorsements
Former President Donald Trump continues to exert significant influence over the Republican party, making endorsements, criticizing opponents, and pushing his legislative agenda. His actions are shaping primary races and creating tensions within the party, particularly regarding the 'SAVE America Act' and his criticism of certain GOP members.
Trump's Influence on Republican Primaries and Internal Party Dynamics
Former President Trump continues to exert significant influence over the Republican party, actively endorsing candidates and campaigning against those he deems disloyal. His efforts include publicly criticizing and seeking to oust Rep. Thomas Massie in Kentucky and pressuring the Senate on legislative priorities like the SAVE Act.
Trump's Influence and Political Maneuvering
Donald Trump continues to exert significant influence over the Republican party and national politics, engaging in endorsements, criticisms, and policy demands. His actions include targeting political opponents, pushing for specific legislation like the SAVE Act, and facing accusations of 'racist hate speech' from a UN panel.
Trump's Political Influence and Endorsements
Donald Trump continues to exert significant influence over the Republican party, actively endorsing candidates and engaging in political feuds. His actions, from campaigning against specific GOP members to supporting new candidates, highlight his ongoing role in shaping the political landscape.
Iran & Middle East Conflict
Tracking the evolving military and diplomatic situation across the Middle East, including US-Iran tensions, Israeli operations, proxy conflicts, and the broader geopolitical implications for the region.
Global Power Shifts
Tracking the changing dynamics of global power, including US-China competition, Russia's geopolitical moves, shifting alliances, NATO developments, and the emergence of new power blocs reshaping the international order.
Should this be getting more attention?
You Might Have Missed
Related stories from different sources and perspectives
GlobalTrump warns US-UK trade deal ‘can always be changed’ with relations in ‘sad state’
<p>President says he gave Britain ‘better deal than I had to’ but ally was ‘not there when we needed them’ on Iran</p><ul><li><p><a href="https://www.theguardian.com/world/live/2026/apr/15/iran-war-live-news-us-naval-blockade-strait-of-hormuz-pakistan-peace-talks-middle-east-crisis-latest">Middle East crisis – live updates</a></p></li><li><p><a href="https://www.theguardian.com/business/live/2026/apr/15/stock-markets-iran-war-peace-deal-reeves-bessent-imf-business-latest-news-updates">Business live – latest updates</a></p></li></ul><p>Donald Trump has threatened to row back on the trade deal the US signed with the UK last year, in his latest salvo against the British government over sharp differences about the US’s approach to the Middle East.</p><p>The US president said the <a href="https://www.theguardian.com/politics/2025/may/08/trump-and-starmer-confirm-breakthrough-us-uk-trade-deal">economic deal</a> struck with the UK, which cut some of his tariffs on cars, aluminium and steel...
FinanceUS trade court weighs legality of Trump 10% global tariff - Reuters
<a href="https://news.google.com/rss/articles/CBMiqgFBVV95cUxOWG42MGJmZHdhNEc0VVJpUUFfMzU0aEhtZUV4eG5nakotUTQ4U0ttclFjVURTaDF1OFFYdVNlWVJDa04yV1BTakRrUEI0aWo5VDd2dlp0Ukt5TGdsSkNKS2xsb2g5SDVuQzdYa1M1YVpRX3BGNWhpdVA2TU9KUnE3dWZMNldWTW9IVXJCLXVUVFUzcGhCaHNtcWdBaXZWODllVnV0eWtERkQ4dw?oc=5" target="_blank">US trade court weighs legality of Trump 10% global tariff</a> <font color="#6f6f6f">Reuters</font>
PoliticsDemocrats grow bolder on talk about removing Trump from office after his Iran threats - AP News
<a href="https://news.google.com/rss/articles/CBMiogFBVV95cUxQR0ttWWNEX1YxdDUxRG5BQ2VXS3hTUjM4eVlmdTlZM2RGNlEwVHFiNzg0a2VBWnNMXzJvQXdyNG5vcXA1c19TM0pOOXV3bUU0ZXB2Y3l6U09faVYzd1FLT2JUT3hmQXJydXhCR3U0NVpkWWQzQ003QUN5OWRrRzRHTkgtSlB2MzNfaVM4Q0lUVDZzRXB4NXBUVHROalkyWlRGT3c?oc=5" target="_blank">Democrats grow bolder on talk about removing Trump from office after his Iran threats</a> <font color="#6f6f6f">AP News</font><strong><a href="https://news.google.com/stories/CAAqNggKIjBDQklTSGpvSmMzUnZjbmt0TXpZd1NoRUtEd2ptMy1EdEVCR1N4ZzJiR3lZU1NpZ0FQAQ?hl=en-US&gl=US&ceid=US:en&oc=5" target="_blank">View Full Coverage on Google News</a></strong>
National SecurityTrump’s ballroom saga invokes national security threats
As President Trump strives to remake Washington in his image, his White House ballroom project stands apart. In court filings this week, his administration insisted that halting construction of the $400 million ballroom would amount to a national security threat — a departure from the broader claims of executive power undergirding other projects. It raises…
PoliticsDemocrats grow bolder on talk about removing Trump from office after his Iran threats
While President Donald Trump eventually pulled back on his threat and agreed to a two-week ceasefire with Iran, Democrats face growing demands to oppose the Republican president in the strongest possible terms.
PoliticsMeadows seeks reimbursement from DOJ for legal fees from Trump-related probes
Mark Meadows is asking the Justice Dept. to reimburse him for legal fees he incurred in multiple federal and state investigations of President Trump, sources said.
Bessent says order requiring banks to collect citizenship information ‘in process’
Treasury Secretary Scott Bessent said that a proposed executive order that would require banks to collect citizenship information is “in process” in an interview this week with Semafor. “And I don’t think it’s unreasonable, because why don’t we have information on who’s in our banking system?” the Trump official told the outlet Monday. “I have…
Did this story change how you see things?
Stories like this only matter when people see them. Help us get verified journalism in front of more eyes.
The Verity Ledger curates verified investigative journalism from trusted sources only.
See our sourcesMost Read This Week
Automatic registration for US military draft to begin in December
There's growing disquiet in the military. The Iran war made it worse
US considers new crackdown on Chinese telecom companies - Reuters
British man charged with directing Somalia-based terror group
Trump's Washington arch plan includes golden-winged figure, eagles, lions and 'One Nation Under God' - AP News
