As the ninety day pause on US President Donald Trump’s tariffs set to expire, the relative stability on world stock markets and bond markets looks to be over. For myself, I did sink some of my hard earned cash three months ago in the Trump slump. So, now we will see what TACO will do this time, will Trump blink again and chicken out?

The world stock markets dropped, Trump was not too concerned as we all lost wealth. But when the bond market began to tank, Trump got yippy and backed down. The term TACO Trade was coined by Financial Times columnist Robert Armstrong in May of this year. Trump is no master negotiator, he is pretty much reactive, and we all know his instincts are not very good. What we do know is Trump will high ball a negotiation, progressively back down then claim a successful negotiation outcome.

We are now a year on from his assassination attempt, Trump really believes he was spared to save America. I have trickled money into the stock market; however, I have cash aside for further share price declines based on Donald’s tariff regime. I certainly do not believe Trump was spared to save America, I have to make sure that I make proper decisions based on Trump’s behaviour. Market timing is somewhat based on behavioural factors along with technical characteristics such as inflation, interest rates, GDP, economic growth, unemployment and of course government policy.