Has TACO trade in stocks run its course? Chris Wood of Jefferies decodes

From a market standpoint, Wood believes, it is just a matter of time before the negative impact of tariffs starts to show up in the macro-economic data

TACO (Trump Always Chickens Out) trade may have run its course as a positive factor for the markets, suggests Christopher Wood, global head of equity strategy at Jefferies in his recent note to investors, GREED & fear.

 

The US stock market, Wood said, continues to celebrate the AI (artificial intelligence) capex trade while ignoring the tariff-related noise based on the TACO viewpoint, or what is otherwise known as the Trump put.  

 

“But GREED & fear has started to wonder if TACO has run its