Five killer charts: TACOs are all the rage
Good morning – here are your five chart for the day. Each one comes snap stat, quick take and why it matters. Skim, steal, forward (but always credit!!).
CHART 1 • Markets gorge on the ‘TACO’ trade
TACOs tasted amazing while they lasted. For months investors gorged on the “Trump Always Chickens Out” trade, betting every tariff threat would be walked back. Now the sauce is turning sour.
The key fact: Donald Trump has already reversed or delayed five big tariff moves this year, yet fresh talk in Washington hints he will stand firm on the next round. One hard decision could smash the idea that he always blinks.
Why it matters is simple. Global asset allocators are the most bullish in a decade, shifting cash out of the dollar into equities from Shanghai to São Paulo. If a shock tariff finally sticks, that optimism could curdle, spiking volatility, choking liquidity and sending the “risk-on” crowd diving for cover.
Snap stat – 3× jump in TACO mentions since 2 May.
Quick take – Investors are shifting cash out of the dollar into equities from Shanghai to São Paulo.
Why it matters – If a shock tariff finally sticks, it’s over for the TACO trade.
Steal-this-caption – “Markets are all-in on TACOs – one tariff bite though could cause a stomach upset.” #FiveChartsDaily
Source: Bloomberg
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