Stocks are teetering on the edge of correction territory. Why the 'TACO trade' could flop.
US stocks are nearing correction territory due to escalating Iran conflict and rising oil prices. The 'TACO trade', which relies on President Trump backing down from aggressive stances, may not hold this time, potentially leading to a bear market.
US stocks are nearing correction territory. The 'TACO trade' may not work this time due to the Iran conflict and rising oil prices. The S&P 500 has fallen 6.8% from its peak, while the Dow and Nasdaq are down 9.2% and 9.6%. A 10% decline would put them in correction territory. Historically, 5% pullbacks have been buying opportunities, but the current conflict raises questions. The White House has sent mixed messages about the conflict, adding to market uncertainty.
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