The truth about Donald Trump and TACO trades

TACO trades are here, Stake launches a new product, and how to boost your home's value by $118,000. Here are five things you may have missed this week.

TACO trade - coming to a sharemarket near you

The flip-flopping of sharemarkets in response to US President Trump's on/off approach to tariffs has been given a name - the TACO trade.

And it has nothing to do with Mexican cuisine.

TACO stands for 'Trump Always Chickens Out' - a reference to the pattern of Donald Trump announcing high tariffs that send markets into a tailspin, followed by tariff pauses or reductions that see markets rebound, particularly in the US.

Sure, not every Australian owns shares, let alone US equities.

But plenty of us will feel the impact of the TACO trade through our super.

SuperRatings reports that super fund returns bounced around more than usual in April as a result of rapidly shifting US tariff announcements.

Even so, 'balanced' super funds ended the month in the black with median gains of 0.6% for April.

That said, the TACO trade may not be over yet.

The whole saga took on a new twist this week when the US Court of International Trade blocked Trump's tariffs.

The daily gyrations can start to feel exhausting.

That's why Kirby Rappell, executive director of SuperRatings, is encouraging Australians to maintain a "long term mindset" for their super.

He believes members are going to "need to learn to live with volatility" for the short term at least.

Colourful price tags don't always signal savings at the pharmacy

Head into a pharmacy run by one of the three big brands - Chemist Warehouse, Priceline and Terry White, and chances are you'll find shelves festooned with eye-catching price tags in bright yellow or hot pink.

Do the tags mean a product is on special?

One in three shoppers find it hard to know.

An investigation by consumer group CHOICE reveals how pricing tactics at major chemists are confusing customers.

In one example, the shelf tag for toothpaste at a Terry White pharmacy listed a price of $6, noting a $5.99 saving on the recommended retail price (RRP) of $11.99.

Yet the pharmacy confirmed it had never sold the toothpaste for $11.99.

Bea Sherwood, Senior Campaigns and Policy Advisor at CHOICE, says, "If the pharmacies have never offered those products at that RRP, consumers may be misled about how much they're really saving, making it harder for people to get the best value."

She adds there has been "a race to the bottom" with these sorts of pricing tactics.

Sherwood says, "Our research shows that confusing price displays aren't limited to the big supermarkets.

"Big businesses like pharmacies, department stores, pet stores and hardware chains employ many similar pricing tactics and should be addressed next."

Stake launches income fund with target return of 5.85%

Investment platform Stake has launched Stake Accumulate, an actively managed income fund that aims for monthly distributions of 2% above the Reserve Bank's cash rate.

As the cash rate is currently sitting at 3.85%, this gives investors a chance to earn 5.85%.

The fund invests chiefly in fixed income securities and corporate bonds, and features a limited income buffer (up to 5% of the fund's total assets) to manage the risk of distribution shortfalls if the fund fails to reach its target return.

Jon Howie, CEO at Stake, says, "We know a growing number of Australians want access to income generating products such as corporate bonds and treasuries, but the high levels of complexity have made it difficult for most people to navigate.

He believes Stake Accumulate breaks barriers to income investing, giving customers a new way to diversify their portfolios.

Stake Accumulate requires a minimum initial investment of $500. Subsequent investments can be as little as $10.

A 0.51% management fee applies, plus recoverable expenses of up to 0.36%.

The fund can only be accessed through the Stake platform.

How to boost your home's value by $118,000

With power bills set to soar, Aussies are increasingly looking for homes that can deliver savings on energy costs.

Two-thirds of Australian home buyers say they would choose an energy-efficient home over a comparable standard dwelling when given a choice.

And we're willing to pay a healthy premium for these properties.

Domain's latest Sustainability Report shows energy efficient houses are selling for 14.5% more than their less efficient counterparts - a price difference of $118,000.

Apartments with energy efficient features command a 12% premium equal to $75,000.

Solar remains the dominant energy efficient feature in Aussie homes.  In 2025, 37.6% of houses sold included solar installations.

But tech doesn't always beat orientation.

Only 15.3% of all homes have a north-facing orientation, yet they can offer significant advantages through passive heating in winter and reduced cooling needs in summer.

Domain says this sees north-facing homes command the highest median price uplift of any energy efficient feature, adding $375,500 to a home's value nationally, and up to $615,000 in Sydney.

DIY super funds miss out on financial advice

A growing number of Australians are taking full control of their super savings.

There are now 646,168 self-managed super funds (SMSFs) in operation - an increase of around 49,000 since mid-2023.

That's almost 1.2 million Australians who manage their own super.

A new report by Vanguard/Investment Trends shows the main motivators for establishing a SMSF are having more control of investments and achieving higher returns.

Yet around 483,000 DIY funds aren't receiving any sort of financial advice.

Based on Tax Office figures of SMSF membership, that's around 780,000 Australians who are saving for retirement without the benefit of professional expertise.

Renae Smith, Chief of Personal Investor, Vanguard Australia, says, "Only 24% of SMSFs currently use a financial adviser, which is not ideal when you think of the many complexities associated with managing superannuation."

These complexities include keeping track of changes in super rules and regulations, fund administration, choosing what to invest in, and managing taxes as well as sorting retirement income needs and estate planning.

One in three newly established SMSFs point to the cost of advice as the chief hurdle.

"On the bright side, the research found that 34% of unadvised SMSFs plan to seek financial advice," Smith says. "But this percentage needs to grow."

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