Wall Street is buzzing about the "TACO" trade, an acronym for "Trump Always Chickens Out." This strategy suggests buying stocks after President Trump announces tariffs, anticipating his eventual retreat and subsequent market rebound. Several instances this year, including recent tariff threats against the EU, support this theory. While some investors are profiting from short-term gains, experts warn that continued reliance on this strategy could ultimately lead to a US recession if trade deals aren't reached.

Prepared by Christopher Adams and reviewed by editorial team.