Lunch with the man who coined TACO

The Indicator podcast interviews Robert Armstrong, a Financial Times writer and host of the Unhedged podcast, to discuss the seemingly paradoxical strength of the stock market despite President Trump's chaotic economic policies, including tariff threats. Several hypotheses are explored: the stock market isn't a perfect reflection of the overall economy; current investor enthusiasm and low risk aversion; positive underlying economic fundamentals like bank reports and potential benefits from deregulation and deficit spending; and the "TACO" hypothesis—that Trump's threats are largely bluster, and markets have learned to discount his pronouncements. While current market trends seem to support this last hypothesis, the possibility of future shifts is acknowledged.