New Delhi, July 18 -- Christopher Wood, Global Head of Equity Strategy at Jefferies, has raised a fresh red flag for global equity investors. In his latest Greed & Fear note, Wood questioned the durability of the so-called "TACO trade"-a long-standing investor belief that U.S. President Donald Trump, though often aggressive in trade rhetoric, will ultimately step back from imposing tariffs. With global markets riding high on artificial intelligence (AI)-driven capital expenditure optimism, Wood warned that investors may be dangerously underestimating the macroeconomic damage tariff wars could bring.

The "TACO trade"-short for "Trump Always Chickens Out"-is a strategy that gained traction among investors during earlier phases of Trump's p...