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The TACO Trade Is Fully Intact

The TACO Trade Is Fully Intact

Markets are coasting on TACO hopes…

David Rosenberg's avatar
David Rosenberg
Jul 10, 2025
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Early Morning with Dave
Early Morning with Dave
The TACO Trade Is Fully Intact
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Highlights

• Markets are coasting on TACO hopes…

• … with sentiment swinging to “extreme greed” levels

• Chinese stimulus rumor lifts Asian equities

• Consumers are pulling back on their spending habits

Key Takeaways

• China Stimulus Buzz: While U.S. equity futures are taking a breather today, European stock markets are firming on the back of EU comments that trade officials are working feverishly to avert a punishing reciprocal tariff. Ditto for Asia, but for a different reason — the rumor mill has it that another round of policy stimulus out of Beijing is coming our way from the upcoming Politburo meeting. Hints of more help for the depressed Real Estate sector sent Chinese property shares soaring more than +11% today.

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