The TACO That Ate Market Strategy
Why ‘buy the dip’ is Trump Always Chickens Out’s best friend.
Reading the balance of risks.
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The news that Vice President JD Vance wouldn’t be flying back to Pakistan for renewed peace talks with Iran, shortly before the ceasefire was due to expire, broke only minutes before the end of Tuesday’s trading on Wall Street. The stock market’s response: “I don’t care.” Or maybe, “I’m so bad baby, I don’t care.”
Crude oil prices surged, with Brent topping $100 for the first time in seven trading days. But the inverse relationship between oil prices and US stocks ended two weeks ago when the pause in hostilities was announced, and nothing — not even the continued blockage of the Strait of Hormuz or failure to advance the peace talks — could bring it back. A sharp rise in crude was balanced by only a muted fall for stocks: