After the TACO Trade, Here Comes the “Trump Collar.” What That Means for Stocks
- Miguel Virgen, PhD Student in Business
- Aug 22, 2025
- 9 min read
When markets opened lower on June 2, 2025, a familiar pattern was on display: a burst of volatility tied to tariff-related rhetoric, followed by a cooling-off period and a partial rebound as policy signals softened. MarketWatch described the new episode and highlighted a fresh market shorthand from Nomura strategist Charlie McElligott, the “Trump collar.” (MarketWatch). The phrase captures how abrupt policy threats and later reassurances have combined to squeeze markets into a capped, range-bound state, much like an options collar, where downside protection comes at the cost of limiting upside.
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