NACHO, NACHO Man
Wall Street bets Strait of Hormuz stays closed and gasoline prices will sting all summer long
This Week In Blunders – May 4-9
“We will frack, frack, frack, and drill baby drill. I will cut your energy prices in half within 12 months.” – President Donald Trump, Oct, 18 2024
Wall Street traders have cooked up a new Mexican delight. This time it’s NACHO instead of TACO.
TACO, an acronym for Trump Always Chickens Out, was Wall Street’s rationale for bidding stock indexes to record highs despite Trump’s wavering tariff threats.
NACHO is another call.
It stands for “Not A Chance Hormuz Opens,” a growing market wager that the Strait of Hormuz disruption is not a temporary panic but the beginning of a prolonged energy shock.
“NACHO is an acknowledgment that higher oil isn’t a temporary shock to trade around, it’s the current market environment,” one market analyst told CNBC.
President Donald Trump can keep prattling about winning the war, ending the war, opening the Strait, but Wall Street is now betting that the world is stuck with $100 oil for the foreseeable future.
