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Wall Street analysts have come up with a term for President Trump’s behavior—Trump Always Chickens Out (TACO).
However, navigating the complexities of dealing with Iran isn’t a straightforward task.
Earlier today, President Trump announced that the United States had been in communication with Iran’s parliamentary speaker, Mohammad Baghar Ghalibaf.
Trump took to Truth Social, stating, “The United States of America is in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our military operations in Iran.”
Despite the president’s statement, Ghalibaf was quick to dismiss these claims.
“The enemy promotes its desires as news while threatening our nation at same time. Big Mistake,” he said.
“God willing, the people of Iran, under the leadership of the Supreme Leader, will make the enemy regret the aggression and reclaim their rights.”
Ghalibaf suggested investors assume the opposite of what Trump has said is the truth.
“Basically, it’s a reverse indicator,” he said.
“Do the opposite: If they pump it, short it. If they dump it, go long.”
Wall Street didn’t take Ghalibaf’s advice overnight. After Trump’s comments, the Dow Jones jumped.
In anticipation of a major TACO move from the president, Deutsche Bank has constructed a “stress index” to predict when investors should get in.
“If the index rises, the probability of a strategic adjustment by the government increases,” Deutsche Bank’s Maximilian Uleer said.
“If all four ‘pain points’ deteriorate simultaneously, the motivation for an adjustment becomes very strong.”
If codified in Iranian law, all tankers passing through the strait will need to pay a substantial fee.
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