The Taco Strategy

[Disaffected]

Last edited Wed May 28, 2025, 01:10 PM - Edit history (1)

Seems stock market traders are now using the TACO strategy for investing (Trump Always Chickens Out).

Buy when Trump announces new tariffs and sell a few days later when he backs off.

[FishBones51]

1. I believe that is called Insider Trading, and it is illegal.

[Disaffected]

2. I should have been a little more clear.

The strategy still works legally.

Trump announces new tariffs. Market drops. Buy shares.

Days later, Trump removes removes or delays the tariffs. Market rises. Sell shares.

No insider information required...

[lapfog_1]

3. correct... but

two things.

1. This only works if the masses still sell shares on the news of new tariffs. The TACO strategy requires the majority of trades to be "sell at market" based on the idea that the tariffs will destroy earnings in the future and then buy at the "bottom" and then when Trump announces the tariffs will be suspended or delayed or removed... and sell on the market rebound as companies correct projections to take into account the chicken out phase. Pattern is pretty well established now, most people are either simply holding instead of panic selling... and the corrections are less of a rise than before. In other words, everyone is taking the pattern into account.

2. I am certain there are a number of people in the Trump orbit who are doing the "insider trading", including selling short on companies that will suffer with the soon to be announced tariff, covering after the tariff is public... then buying just before the tariff is suspended or delayed and selling after the announcement. People like MTG. They need to be investigated, charged, convicted, and sent to prison. This is essentially the "Martha Stewart" crime.

[Disaffected]

4. Sure,

1. Market "strategy(s)" only work to an extent - there are no assurances of continuing efficacy and, as you point out, the trading public eventually catches on and the strategy is thereby negated. In a more general sense, the same principle holds that there are no, at least short term, strategies that work reliably. The only good market strategy I am aware of is to buy, and hold for the long term, good quality, dividend paying stocks which has almost always worked historically.

2. But the "TACO" strategy doesn't need insider information (although it would of course work better if such info is utilized).

[FishBones51]

5. At the least, it is still illegal "Market Manipulation"

[Disaffected]

8. I don't believe there is anything

illegal about it or manipulative - it is simply making trading decisions based on current market conditions and, on information that is available to the public i.e. like most market trading is done.

Unless of course you are referring to the accusation that Trump is making his tariff announcements to manipulate the markets.

[FishBones51]

10. Sarcasm?

First...Didn't he tweet that it was a "good time to buy" when things were at their worst?
*TACO*
Then...Didn't he say in the White House that his visitors should "thank" him for making millions the past few days?

[Sympthsical]

6. Actually did this

Not the selling part, since we plan to hold for another 20-25 years. But I have a little group of friends in Discord where we discuss these things, and we all bought up some nice bits during a tariff dip knowing it was going to bounce.

Just glanced at things. If I sold what I bought at current prices, it’d be a 53% return.

[Disaffected]

9. There you go then.

It's what's been happening since market trading was invented.

BTW, market trading is essential for the establishment of (relatively) stable determination of market buy & sell prices. Without open and freely available market trading, the price of goods & services would be much more uncertain and volatile. The same is said for "short selling" but I'm not so sure about that aspect of it.

[Sympthsical]

13. I'm not educated enough to "play the market"

I don’t know enough to make confident choices in what I’m doing, which is why outside friends are consulted.

But these tariff swings were so ridiculous and so obvious, it was an irresistible opportunity. We all went in together. I had some free money due to working a lot of overtime and double time the past few months, so sure, why not.

But I think that’s going to be the extent of it. I don’t like touching things.

[LetMyPeopleVote]

7. This made me smile

[LetMyPeopleVote]

11. Wall Street's new term- TACO (Trump Always Chickens Out) is pissing off trump

I loved Lawrence last night

This meme also made me smile

trump was asked about this term and was pissed

Reporter: Wall Street analysts have a new term called the TACO trade.. Saying Trump always chickens out on tariffs…  

Trump: I kick out?

Reporter: Chicken out.

— Acyn (@acyn.bsky.social) 2025-05-28T17:13:22.578Z

Wall Street has caught on to trump's taco tactics

[UTUSN]

12. Hah!

[LetMyPeopleVote]

14. The Internet is having fun with Trump Always Chickens Out (TACO)