‘Taco’ factor has had higher markets

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Taco trade is currently the most popular banquet in the markets, but still leaves a unique taste in the mouth.

Term, condensed By my esteemed colleague Robert Armstrong, Trump’s always covers the concept of chicken chicken and risky assets in connection with his favorite trade taxes.

It hurts to admit me that he came to something with so ready and APT before thinking about it, but he draws attention. Key evidence, on April 9, when the US president called “Freedom Day” a week ago, “he stopped” a week ago. “The markets bent in detail and at least partially retreated.

Then Trump has increased ANTE against Jay Powell, who said they wanted the definition of the Federal Reserve Chair. Again, the markets pucked and the president quickly moved himself away from all his opinion.

Came in relation to the last Chinese. Negotiations on trade in Switzerland a week ago, the Bank called the “Geneva Prevention” – the obligation to return tariffs in China.

This latest Taco is the one who really fires markets this week. The United States has been recovered since the beginning of April and all the losses for this year for this year, as none of these madness has been removed.

“Swift Ribaund, shares, not to harm the macro from a commercial war, moved from a sharp slowdown price,” said Bofa.

A large relief wave in markets on the peak is very large to ignore. This week earned 4.5 percent in the S & P 500 index, which is above 5,900. Disputes that such a short distress is a short distress – when negative bets are exhausted and reverse – feel like sour vines. As Aviva points to investors, it is darker than the rise in the mood – economic uncertainty measures, for example, the measures of real stress in corporate bonds.

“I think we will get the barking of the capital market,” said Sunil Krishnan, the head of the Very-Asset in Aviva investors. “It is reasonable to think that we are not returning to Freedom Day.” Although the defensive guards, he said he was exposed to shares.

Again, the jump in the markets this week now is similar to a joy that one threatens to cut off your foot rather than all your feet. About 30 percent, the initial accounts in China are still superior in the meanings of economists in early this year. The global floor “Floor” is very high, leaving the largest economy of 10 percent since the 1940s. This provides the risk of inflation and growth risk, low-growering risk, without a real chance to give an extensive growing impetus to the internal production of US.

“I have been managed for 36 years. This is the most strangest rally I have ever experienced,” said Yves Bonzon, Swiss private bank Julius Baer. “I understand this reason, but 5.900? Really? It looks like a thick call.”

US optimists sit on beautiful gains and are good for them. However, in the rest of the world, investors are still exciting in the rule of law in America, they have been able to take a great division without any obstacles or controls. Wealthy customers are the type of question asked by Bonzon and lately remains alone to grow with me. “The conversation is not the return of the capital, but the return of capital,” he said.

It’s a terrible question to ask, a few months ago would be barmy. Although it is grown as a serious opportunity, Trump would be almost chicken. However, it is difficult to restore this from a world, a long-term world seen in a serious probability. For many investors, it seems to be the only careful choice, bending from the United States and to Europe and Asia over time.

These cracks in the foundations are not the only reason to be careful. Underweight technological shares, the famous magnificent seven, the shock that responded to Deepseek’s price up to Chatgept, was not clear from the shock – was found in January. This means the jeweler of the US markets – great technology is a risky offer.

Max Uleer in the Deutsche Bank wrote that he thought that the higher the higher in the United States this week was considering that he looked brittle. “We expect short-term, S & P 500 to continue as US companies, because US companies are a greater benefit of tariff cuts,” he said. “But …… Tariffs will still be a bigger load than in European companies. The political uncertainty is still in Europe. The gains are more favorable in Europe.

Among the main doubts about the rule of law in the United States, “Only one battle!” The difficulty is awkward, to say at least. It is foolish to stay in a very religious for both reviews.

katie.martin@ft.com