The Indicator from Planet Money Lunch with the man who coined TACO
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Jul 22, 2025 What happens when you mix tasty tacos with economic theories? You get a lively discussion about the disconnect between the stock market and the broader economy. The man behind the acronym TACO (Trump Always Chickens Out) dives into how political dynamics and investor sentiment shape market reactions. Despite tariff threats and presidential bravado, the stock market keeps soaring. Tune in for insights that blend humor with the complexities of trade and finance!
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Origin of TACO Acronym
- Robert Armstrong met with the host at a Mexican restaurant to discuss his acronym TACO.
- TACO stands for 'Trump Always Chickens Out,' highlighting Trump's pattern on tariff threats.
Stock Market vs Economy
- The stock market is not the economy but reflects future profits of public companies.
- Company fortunes partly indicate economy but miss parts like local businesses or jobs.
Market Enthusiasm Drives Prices
- The stock market often acts emotionally, rising with enthusiasm and fear of missing out.
- Current market optimism is partly driven by excitement over technologies like AI.