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Investors who have been buying the dip have seen gains in 2025, with the strategy seeing the highest return in more than 30 years.
Some are calling the recent dip-buying activity the "Trump always chickens out" — or "TACO" — trade, referring to buying dips fueled by news of Trump's policy changes, then selling the rebound when the president backs off.
When asked about the "TACO" trade, Trump denied that he is "chickening out," calling it "negotiation."
Kayne Anderson Rudnick's chief market strategist and portfolio manager, Julie Biel, tells Catalysts host Madison Mills that she is "worried" that Trump may "bear down" on tariffs and fuel further uncertainty.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
And and to your point on uncertainty versus certainty, we have the new Taco trade headlines coming in, the idea that Trump always chickens out when it comes to tariffs. How much faith should investors have in that idea driving their investments?
Well, it's concerning, right? Because unfortunately we told him, we told Donald Trump that that we have this Taco trade, and so I worry a little bit that that actually makes him bear down a little bit more and decide to be more, you know, more, uh, gripping on some of these tariff trades. And so I have a little bit of a concern that that creates actually more uncertainty. But, you know, for the most part, that's worked quite well for a lot of investors. They've been able to take advantage of that. And I think that that actually connects to a lot of, you know, former trades where it was, you know, buying the dip. A lot of people don't want to be caught out on these big moves upwards. And so I think you'll continue to see volatility around that, because there's so much still uncertainty. And the thing is is that the policy changes, they change so quickly and they change immediately, right? They take, they take effect almost immediately. So we continue to kind of see the level of uncertainty as being an overhang for probably the rest of the year at least.
