The TACO Trade Is Back — But the Real Story Is 5.2% Inflation Expectations
President Trump just unveiled another massive TACO.
The term “TACO” is an acronym for “Trump Always Chickens Out.” It implies that the President, for all his bluster and verbal aggression, is in fact quite opposed to conflict, especially if it hurts the stock market.
Earlier today, President Trump tweeted the following:
Stocks immediately ignited higher. As I write this, the S&P 500 is up 2.4%, the NASDAQ is up 2.6% and the Russell 2000 is up 3.8%. Stocks had been in VERY serious trouble late last week, so this announcement from the President is a welcome relief!
It was also extremely expected.
From a technical analysis perspective, the S&P 500 had broken below the all-important 200-day simple moving average. This is THE long-term bull market trendline for stocks. So the odds greatly favored an intervention by the President.
How will this play out from a geopolitical perspective? I have no idea. The President changes his stance on Iran on a weekly basis. And frankly, there are only a few dozen people in the world who have access to the real information concerning what is taking place geopolitically. Everyone else is reacting to rumor, fiction, or worse, misinformation that is intentionally leaked for strategic purposes.
Update... Iran has just denied the President's claims.
And Trump has claimed he has no idea what Iran is talking about.
Trying to understand this, let alone trade it, is impossible. But what IS clear is that the energy disruptions have the potential to unleash another round of inflation… and the markets know it: 12month inflation expectations just exploded higher to 5.2%!
The time to prepare for this is NOW before it hits the markets. The smart money is already rotating into hard assets and precious metals — the sectors that have historically thrived during inflationary storms.
On that note, our Special Investment Report titled Survive the Inflationary Storm details FIVE precious metals mining plays you can use to potentially make extraordinary gains. These are HIGH OCTANE positions that rose 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025! And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but in light of what is unfolding today, we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
