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The endless Trump TACO Terror & TALO Tantrum cycle Early after the April 2nd “Own-Goal Day” tariffs I argued that in the game of chicken between Trump, Powell and Xi the one to chicken out would be Trump . That simple point was turned into the now viral TACO (Trump Always Chickens Out) meme by FT’s Armstrong. But the real Trump Tantrum cycle is between TACO and TALO (Trump Always Lashes Out). Indeed Trump impulsive instincts start with TALO that is followed by severe market discipline as bond vigilantes - as well as stock, credit and FX vigilantes - sharply vote with price falls to Trump’s TALO Tantrums. Then Trump panics and gets into a terror mode as he is worried that tightening of financial conditions will lead to a recession and massive midterm elections losses. Thus, Trump then moves into TACO Terror mode that calms the markets. But then he reverts back into a narcissistic tantrum as he appears as a loser wimp with no “cojones” that is laughed on by markets and investors (and now viral TACO songs and memes are brutal). Then he reacts with another TALO Tantrum followed by another bout of market discipline and then another return to TACO Terror. Into an endless TALO & TACO loop. By now investors are starting to get it and know that a TALO Tantrum will be followed by a TACO Terror and fade out all this endless saga and noise! As I argued already in December Trump is boxed in and guard-railed by 4 major forces: market discipline, Fed independence , some good economic advisors and a thin majority in Congress. That is why after April 2nd I had the contrarian view - compared to Wall Street’s panic that a recession was inevitable - that we would NOT end up with a US and global recession. So far I turned out to be correct. So enjoy the farcical TACO & TALO Tantrums rollercoaster rather panic about it 🎢🎡🎢🎡🎢🎡