Analysis: Asset markets shift from 'TACO' to 'NACHO' trading

Global asset markets are shifting their focus from "TACO" (Trump Always Chicken Out) trading to "NACHO" (Not A Chance Hormuz Opens) trading, BlockBeats reported. The "NACHO" thesis is based on the following logic: - Insurers will not underwrite policies for ships passing through the Strait of Hormuz. - This effectively keeps the strait closed, driving up oil prices and, in turn, inflation. - Consequently, the U.S. Federal Reserve will be unable to cut interest rates. While high oil prices and interest rates are typically negative for asset markets, this shift suggests that investors now view the unresolved situation in Iran as a constant factor from which to profit. As confidence grows that the Strait of Hormuz will not reopen in the short term, capital is flowing into beneficiary assets such as energy stocks and big tech companies with strong cash reserves and AI momentum. According to eToro analyst Zavier Wong, the market appears to have decided against expecting an immediate solution to the Iran situation. He added that high oil prices have become a feature of the current market environment rather than a temporary shock.