Mixed signals last week when President Trump announced tariff rates

 ... on several important trade partners not so different from the ones he set back in April.

Back then, stocks swooned, the dollar cratered, and bond yields soared. This time, it was a big yawn.  

One explanation is the “TACO” hypothesis that Trump won’t actually impose these punishing rates, at least not for long. 

He is instead negotiating (we hope) in his characteristic way, threatening extreme consequences to get a more moderate result.

We’ll see what happens.

John Mauldin 11 July 2025

https://www.mauldineconomics.com/frontlinethoughts/uncertain-moments


 “We absolutely believe the recent bullish price action in risk assets makes sense,” 

The view reflects an increasingly common bet across Wall Street, known as the “TACO” trade, for Trump Always Chickens Out.

https://englundmacro.blogspot.com/2025/07/trump-30-procentiga-tullar-pa-varor.html


Wall Street Bulls 11 July, Yesterday, seems so far away...

https://englundmacro.blogspot.com/2025/07/wall-street-bulls-are-very-hard-to.html






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