From TACO to FOMO: How retail traders turned Trump-driven volatility into a playbook
Retail traders are adapting to political volatility during Trump's second term, creating new trading acronyms like TACO and FAFO. These terms reflect a shift in investor behavior as they respond to rapid news cycles and geopolitical events. The dynamics of trading have evolved, with a notable preference for energy assets over traditional safe havens like gold.
- ▪Retail-driven trading dynamics are reshaping market responses to political events.
- ▪Acronyms such as TACO and FAFO have emerged, reflecting retail investors' reactions to volatility.
- ▪Investors are increasingly favoring energy assets, with oil prices nearly doubling since January.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountA wave of retail-driven trading dynamics is reshaping how markets respond to U.S. President Donald Trump’s second term and his war in Iran, turning political volatility into a set of widely recognised and traded patterns.Acronyms like “TACO” - “Trump always chickens out” - “FAFO” - “f*** around, find out” and “FOMO” - “fear of missing out” - have emerged and increasingly reflect the behaviour of retail investors, who are reacting to an incessant news flow to lean into short-term swings.“Bull and bear are still the foundation, but ‘TACO’ and ‘FAFO’ are becoming part of the everyday language on trading desks,” said Lale Akoner, global market strategist at eToro.In April 2025, Trump shocked global markets by…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
