Donald Trump's love for catchy acronyms has been quite evident during his four-month presidency till now, and the US President is often seen turning catchphrases like MAGA, DOGE and MAHA into slogans. Now, market observers have taken a cue to follow his path, coming up with a few of their own acronyms that have been spreading across the trading industry.
As per a report by Reuters, traders say that these acronyms are relevant for Trump-era markets, such as volatility and uncertainty, which investors need to consider when making decisions.
Some of the new labels are associated with investment strategies that aimed to capitalise on Trump's economic and trade polices and international relations goals. Others are targeted at economic implications or his U-turns as markets and trade partners react to his proposals.
From TACO to FAFO, here are some of the new acronyms that have captured the investment world in the recent times:
TACO stands for “Trump Always Chickens Out”. The word was coined by a Financial Times columnist and refers to the US President's tendency to go back and forth on tariffs and trade deals in the wake of his April 2 "Liberation Day" speech. When asked about TACO earlier this month, Trump was visibly offended.
An acronym for “Fuck Around and Find Out”, FAFO is a word that has been there for quite a long time. However, it has found some renewed relevance as a favourite work at trading desks. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created.
This MAGA stands for “Make America Go Away” 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 US investments, as per Reuters.
Meaning Make Europe Great Again, MEGA was first coined last year to address European competitiveness. It has resurfaced this Spring as a way to describe the flurry of investor interest in and flows into European markets. 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.
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