Trump between tariffs and TACO
What the US president says continues to impact the markets, more than the government shutdown or the overvaluation of assets.
While the stick comes and goes, the backs rest. As long as the markets, investors, and the US economy don't feel the pain, Donald Trump will perhaps push the envelope on the shutdown, trying to impose his policy. There is, however, an invisible limit that the market imposes whenever the president talks too much—and this limit is called TACO, "Trump Always Chickens Out," meaning Trump always ends up backing down when the stock market falls too much. But the acronym can also be reinterpreted as "Trump Asset Correction Oscillation," describing the automatic fluctuation of assets whenever the president threatens globalization.
Content reserved for subscribers. See the full article here . Jornal Económico , October 17th.
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