TACO Trade Is Not Quite Dead Yet Even If Your P&L Says Otherwise

Authored by Simon White, Bloomberg macro strategist,

An expression of the TACO trade was hit by heavy losses on Friday after President Trump’s threat of “massive” tariffs on China.

But the trade is seemingly alive after all for now, albeit with some extra premium now added in, after subsequent signs of de-escalation from both the US and China over the weekend.