Since early May, when Financial Times journalist Robert Armstrong coined the term “TACO Trade”, markets seem to be taking less notice of Trump’s flurry of daily posts, off-the-cuff remarks and Oval Office press conferences. Volatility in all markets has declined materially and equity markets have returned to previous highs.

Perhaps market participants had a moment of clarity, a cathartic realisation, that “Trump Always Chickens Out” was indeed an accurate assessment of events - that they were simply witnessing the same theatrics and grandstanding that the President has been known to engage in for ...