Many on Wall Street saw this 'TACO' coming as Trump's brinkmanship starts to lose grip on sector

The “TACO” trade — TACO being shorthand for Trump Always Chickens Out — has increasingly shaped positioning.

Each bout of geopolitical-driven selling has become progressively more muted since April 2025. This also touches on aspects of bear market.

The market’s growing confidence is also raising a latest question: What happens if markets stop acting as a constraint on Trump?

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