When the markets became rattled by the prospect of a Trump threat to annex Greenland over the weekend, I knew that a TACO (Trump Always Chickens Out) walk back was inevitable. I observed in the past that the markets would eventually discipline Trump’s unusual excesses. Indeed, the combination of a spiking 10-year Treasury yield and surging volatility indices pressured the White House to find a face-saving off-ramp.
In addition, I believe the Greenland Gambit along with the Venezuelan Adventure are part of a pattern of foreign policy moves as domestic policy safety valves leading up to the mid-term election. Investors should view possible U.S. foreign policy initiative between today and November within an electoral framework and react accordingly.
In addition, I believe the Greenland Gambit along with the Venezuelan Adventure are part of a pattern of foreign policy moves as domestic policy safety valves leading up to the mid-term election. Investors should view possible U.S. foreign policy initiative between today and November within an electoral framework and react accordingly.
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