From TACO to FAFO, investors love parodies of Trump acronyms
Four months into President
Donald Trump
's second term, market observers have taken a cue from his fondness for condensing slogans into catchy acronyms like MAGA, DOGE and MAHA, and devised a few of their own that have been spreading across trading desks.
Even those acronyms that do not directly reflect a specific trading strategy, still capture factors that traders say are important in Trump-era markets, such as volatility and uncertainty, that investors need to consider when making decisions.
Some of the new labels are associated with investment strategies that aimed to capitalized on Trump's economic and trade polices, and international relations goals. Others riff off economic implications or his abrupt U-turns as markets and trade partners react to his proposals.
The "Trump Trade" that played on the Make America Great Again theme in the wake of his November election victory and January inauguration, and contributed to record highs on Wall Street in February, is hardly discussed now that stocks, the dollar and Treasury bonds have succumbed to worries about his tariff polices.
"Post the election, we heard a lot about YOLO (You Only Live Once), which seemed to promote taking outsize risks in a concentrated investment theme," Art Hogan, strategist at B. Riley Wealth, said.
Live Events
YOLO, is an acronym used to describe the tendency that was part of that Trump trade to chase high momentum strategies such as cryptocurrency. "While the term YOLO was popular for a period of time, it goes against all traditional advice," Hogan said.
Here are of few more acronyms that have gotten play in the investment world in recent weeks:
** TACO (Trump Always Chickens Out) - This one coined by a Financial Times columnist, has been used as a way to describe Trump's to-ing and fro-ing on tariffs in the wake of his April 2 "Liberation Day" speech. When asked about TACO in a recent press conference, the president lashed out, calling the question "nasty"
"Where we end up might not be too far from what he promised on the campaign trail. So, does he always chicken out? I wouldn't go as far as to say that," said Christian DiClementi, fixed income portfolio manager at AllianceBernstein.
"I think that he wants to rebalance the economy without pushing it off a cliff. And we're watching that being executed in real time. I think some of the ideas are thought out and some of them change on the fly."
** MEGA (Make Europe Great Again) - Mega first coined last year to address European competitiveness, resurfaced this Spring as a way to describe the flurry of investor interest in and flows into European markets. MEGA hats, spoofing their MAGA counterparts, are easily purchased online It's been revived by investors and traders in light of the outperformance European stocks in the immediate aftermath of Trump's "Liberation Day" tariffs bombshell.
** MAGA (Make America Go Away) - While the original Trump Trade was also known as the
MAGA trade
, this variation cribbed the president's motto, first appearing in response to Vice President JD Vance's brief and unfruitful visit to Greenland, the autonomous territory of Denmark, which Trump has expressed interest in annexing. At least one Canadian investor says that quip is making the rounds of trading desks in Toronto and Montreal and sparking "wishful thinking" about simply boycotting U.S. investments.
** FAFO (Fuck Around and Find Out) - Although the acronym also came into being well before Trump's inauguration, it is being heard with increasing frequency in trading desk conversations. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created. Mark Spindel, chief investment officer of Potomac River Capital LLC, described the market as being caught in a "pinball machine as a result of that policymaking process."
When reached for comment, White House spokesman Kush Desai said in an email "these asinine acronyms convey how unserious analysts have consistently beclowned themselves by mocking President Trump and his agenda that've already delivered multiple expectation-beating jobs and inflation reports, trillions in investment commitments, a historic UK trade agreement, and rising consumer confidence."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
32 minutes ago
- Economic Times
European shares start lower after Trump's fresh tariff threats
European shares opened lower on Monday, after rounding off monthly gains in May, as U.S. President Donald Trump's new tariff plans threatened to rekindle global trade tensions. ADVERTISEMENT The continent-wide STOXX 600 was down 0.2% as of 0708 GMT. Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, to which the European Union said it was prepared to retaliate. Steel companies in Europe fell, with ArcelorMittal down 1% and conglomerate Thyssenkrupp down 1.1%. The tariffs, which can impact automobiles, weighed on stocks of carmakers, with the sector down 1.2%. Meanwhile, Sanofi agreed to buy U.S.-based Blueprint Medicines Corporation, paying $129 per share, representing an equity value of approximately $9.1 billion. Shares in the French pharma group were slightly lower. ADVERTISEMENT This week, the spotlight will be on the European Central Bank, which will announce its interest rate decision on Thursday. Comments from Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde will be on tap, alongside a slew of economic data out of the trade bloc. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Indian Express
39 minutes ago
- Indian Express
Polish nationalist Karol Nawrocki wins presidency in setback for pro-EU government
Nationalist opposition candidate Karol Nawrocki narrowly won Poland's presidential election, results showed on Monday, delivering a major blow to the centrist government's efforts to cement Warsaw's pro-European orientation. In a victory for European conservatives inspired by U.S. President Donald Trump, Nawrocki secured 50.89% of the vote, election commission data showed, an outcome that presages more political gridlock as he is likely to use his presidential veto to thwart Prime Minister Donald Tusk's liberal policy agenda. Tusk's government has been seeking to reverse judicial reforms made by the previous nationalist Law and Justice (PiS) government, but current President Andrzej Duda, a PiS ally, has blocked its efforts – a pattern Nawrocki is likely to continue. Nawrocki's rival, Rafal Trzaskowski, the liberal Warsaw mayor who was standing for Tusk's ruling Civic Coalition (KO), got 49.11%, the data showed. Both candidates had declared victory immediately after the publication of an exit poll late on Sunday that showed the result would be very close. Nawrocki, a conservative historian and amateur boxer who was backed by PiS, had presented the vote as a referendum on Tusk's 18-month-old government. 'The referendum on the dismissal of the Tusk government has been won,' PiS lawmaker Jacek Sasin wrote on X. Poland's blue-chip stock index shed more than 2% in early trade on Monday as investors anticipated more political paralysis. The zloty currency also fell versus the euro. Nawrocki, like his predecessor Duda, is expected to block any attempts by the Tusk government to liberalise abortion or reform the judiciary. The EU took the previous PiS government to court over its judical reforms, saying they undermined the rule of law and democratic standards. Sunday's run-off vote in Poland came just two weeks after Romania's centrist Bucharest mayor, Nicusor Dan, had dealt a blow to hard-right and nationalist forces in central Europe by winning that country's presidential contest. Congratulations poured in from other nationalist and eurosceptic politicians in the region. The defeated hard-right candidate in Romania's election, George Simion, wrote on X 'Poland WON', while Hungarian Prime Minister Viktor Orban hailed a 'fantastic victory'. European Commission President Ursula von der Leyen said she was convinced the EU could continue its 'very good cooperation' with Poland. Nawrocki, 42, a newcomer to politics who previously ran a national remembrance institute, campaigned on a promise to ensure economic and social policies favour Poles over other nationalities, including refugees from neighbouring Ukraine. He vowed to protect Poland's sovereignty and railed against what he said was excessive interference in the country's affairs from Brussels. While Poland's parliament holds most power, the president can veto legislation, and the vote was being watched closely in Ukraine as well as Russia, the United States and the EU. Borys Budka, a KO Member of the European Parliament, said he believed PiS now sought to 'overthrow the legal government'. 'This may be a big challenge for the government, which will be blocked when it comes to good initiatives,' he told state news channel TVP Info. Nawrocki won despite his past dominating the last days of the presidential campaign – from questions over his acquisition of a flat from a pensioner to an admission that he took part in orchestrated brawls. Turnout was 71.31%, the electoral commission said, a record for the second round of a presidential election
Time of India
40 minutes ago
- Time of India
Election of Trump ally in Poland could alter EU and Ukraine policies
AP image WARSAW: Poland has elected Karol Nawrocki, a conservative historian and staunch nationalist, as its next president in a closely watched vote that signals a resurgence of right-wing populism in the heart of Europe. Nawrocki, who is set to take office on August 6, is expected to shape the country's domestic and foreign policy in ways that could strain ties with Brussels while aligning the Central European nation of nearly 38 million people more closely with the administration of President Donald Trump in the United States. Nawrocki's victory underscores the enduring appeal of nationalist rhetoric among about half of the country along the eastern flank of NATO and the European Union, and its deep social divisions. The 42-year-old historian who had no previous political experience built his campaign on patriotic themes, traditional catholic values, and a vow to defend Poland's sovereignty against the EU and larger European nations like Germany. His win also reflects the appeal of right-wing nationalism across Europe, where concerns about migration, national sovereignty, and cultural identity have led to surging support for parties on the right - even the far right in recent times. Far-right candidates did very well in Poland's first round of voting two weeks earlier, underlining the appeal of the nationalist and conservative views. Nawrocki picked up many of those votes. As his supporters celebrate his win, those who voted for the defeated liberal candidate, Warsaw Mayor Rafal Trzaskowski, worry that it will hasten the erosion of liberal democratic norms. Nawrocki's presidency presents a direct challenge to Prime Minister Donald Tusk, who returned to power in late 2023 pledging to mend relations with the EU and restore judicial independence which Brussels said was eroded by law and justice, the party that backed Nawrocki. But Tusk's coalition - a fragile alliance of centrists, leftists, and agrarian conservatives - has struggled to push through key promises including a civil union law for same-sex couples and a less restrictive abortion law. Nawrocki, who opposes such measures, will have the power to veto legislation, complicating Tusk's agenda and potentially triggering political gridlock. Nawrocki's election could signal a stronger relationship between Poland and the Trump administration. Poland and the US are close allies, and there are 10,000 US troops stationed in Poland, but Tusk and his partners in the past have been critical of Trump. Nawrocki, however, has a worldview closely aligned with Trump and his Make America Great Again ethos. Trump welcomed Nawrocki to the White House a month ago and his administration made clear in other ways that he was its preferred candidate. While Nawrocki has voiced support for Ukraine's defense against Russian aggression, he does not back Ukrainian membership in NATO and has questioned the long-term costs of aid - particularly support for refugees. His rhetoric has at times echoed that of Trump, for instance by accusing Ukrainian President Volodymyr Zelenskyy of what he said was insufficient gratitude for Poland's assistance. With growing public fatigue over helping Ukrainian refugees, Nawrocki's approach could shift Poland's posture from strong ally to conditional partner if the war drags on much longer. The election result is a setback for the EU, which had welcomed Tusk's return in 2023 as a signal of renewed pro-European engagement. Nawrocki and the Law and Justice party have criticized what nationalists view as EU overreach into Poland's national affairs, especially regarding judicial reforms and migration policy. While the president does not control day-to-day diplomacy, Nawrocki's symbolic and veto powers could frustrate Brussels' efforts to bring Poland back into alignment with bloc standards, particularly on rule-of-law issues. Though an EU member, Poland has its own currency, the zloty, which weakened slightly on Monday morning, reflecting investor concerns over potential policy instability and renewed tensions with EU institutions. Billions of euros in EU funding has been linked to judicial reforms which Tusk's government will now be unlikely to enact without presidential cooperation.
