tarrifs

**Excerpt:**

Wall Street is riding the wave of Donald Trump’s unpredictable trade policies, with Deutsche Bank betting big on a 10% surge in the S&P 500—thanks to the so-called **”TACO” trade** (Trump Always Backs Down). Coined by the *Financial Times*’ Robert Armstrong, the term captures Trump’s pattern of proposing aggressive tariffs, sparking market panic, then walking them back—triggering rallies. After a 20% rebound from April’s lows, analysts like Binky Chadha argue the trend is here to stay.

But the strategy isn’t without drama: Trump dismisses the TACO label as “nasty,” while the DNC trolls him with a taco truck stunt. For investors, though, the profits outweigh the politics. As Juan Manuel Correa of BCA Research puts it, this is a “victory for global investors”—proving once again that markets thrive on Trump’s reversals.

**Key Takeaway:** Love it or hate it, the TACO trade is Wall Street’s latest playbook, turning political whiplash into bullish momentum.

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