TACO trade goes cold: why Wall Street isn't buying Trump's Iran extension

Wall Street has spent most of the past year running the 'TACO' trade—'Trump Always Chickens Out'—a positioning strategy that bets markets will rally when political threats fade. This is descriptive of investor sentiment and flow-driven positioning rather than a discrete market-moving event.

Analysis

Wall Street has spent most of the past year running the 'TACO' trade—'Trump Always Chickens Out'—a positioning strategy that bets markets will rally when political threats fade. This is descriptive of investor sentiment and flow-driven positioning rather than a discrete market-moving event.