TACO, NACHO, Now KWIK? Michael Burry Coins New Acronym For Trump's Potential Iran Endgame

Burry said Trump's imminent peace agreement with Iran could ultimately evolve into a “Killing With Incredible Kindness” (KWIK) strategy that would ultimately allow it to participate more fully in the global economy.

• Additionally, Burry said that Trump was a "master of misdirection," noting that some of the market's strongest rallies came after the president’s policy reversals, including on tariffs. 
• Extending the logic, Burry said that it seemed that the deal with Iran could follow a similar pattern.
• On Sunday, the U.S. and Iran announced that a peace deal agreement would be signed on June 19, effectively ending the war between the two countries.

"The Big Short" investor Michael Burry is looking to add a new term to the trading lexicon that has sprouted around President Trump's volatile geopolitical strategy: KWIK.

In comments on his Substack over the weekend, Burry suggested that Trump's imminent peace agreement with Iran could ultimately evolve into a "Killing With Incredible Kindness" (KWIK) strategy. The veteran investor clarified that the acronym refers to a scenario in which the U.S. eventually lifts sanctions on Iran and allows the country to participate more fully in the global economy, to reduce long-term geopolitical tensions through prosperity rather than pressure.

The US-Iran Peace Deal

The comments came amid reports of an interim peace deal between the U.S. and Iran. “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump said on Sunday in a post on Truth Social, adding that the Strait of Hormuz would be open amid “the immediate removal of the United States Naval blockade” that would allow ships to pass through the critical waterways. “Ships of the World, start your engines. Let the oil flow!” he said.

In a separate post, Trump clarified that the Strait would open on Friday following the signing of the deal. Earlier on Sunday, Pakistani Prime Minister Shehbaz Sharif confirmed the deal in a post on X, adding that the official signing ceremony will be completed in Switzerland on June 19.

U.S. stock futures jumped following the announcement, and oil prices declined sharply on optimism that the conflict in the Middle East had finally come to an end after 107 days.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 1.25%, while the Invesco QQQ Trust ETF (QQQ) gained more than 2% and the SPDR Dow Jones Industrial Average ETF Trust (DIA) was up about 1.02%. Retail sentiment on Stocktwits for all three was in the ‘bearish’ territory.

Burry Says Trump Is ‘Master Of Misdirection’

Burry said that Trump had been signaling a potential deal for weeks, describing the effort as “unbecomingly obvious.” Additionally, Burry said that Trump was a "master of misdirection," noting that some of the market's strongest rallies came after the president’s policy reversals.

“He instituted tariffs to take them away for a big market rally, and the market’s biggest turnaround rallies have come on big pronouncements from Trump where he restores an environment he disrupted,” he said.

Extending the logic, Burry said that it seemed that the deal with Iran could follow a similar pattern. “If that is happening, then perhaps [the] U.S. should now let it run with the ball. Take away all sanctions, allow Iran to participate fully in the global economy, and how that this prosperity will make it less belligerent in the long run,” he said, before touting the “KWIK” strategy.

“Killing with Incredible Kindness, Another Trump strategy less well known than TACO or NACHO. Participation in the global economy is the least warlike strategy to calm tensions,” he noted.

The “Not A Chance Hormuz Opens” (NACHO) acronym emerged amid the Iran war as investors debated Trump’s shifting claims about the reopening of the critical waterways. Meanwhile, TACO or “Trump Always Chickens Out" referred to Trump’s back-and-forth on tariffs and geopolitical threats.

Saying that he made up the acronym on the spot, Burry pointed to Trump’s “bear hug strategy” that involved applying pressure right before pivoting toward reconciliation. “He is one of those bullies that can be so incredibly kind and he can turn on a dime while also keeping long grudges. Like a good mob boss,” Burry said.

Burry’s Strait Of Hormuz Bet

The investor also questioned claims that Iran had abandoned its nuclear ambitions for the deal. “We are facing a Trump TruthSocial post announcing an imminent peace deal because Iran supposedly does not want nuclear weapons anymore. Questionable at best,” Burry said.

A major point of contention for the peace deal with Iran involved the country's nuclear program. Trump has repeatedly insisted that any negotiations must ensure Iran can never develop or obtain a nuclear weapon, describing the issue as a non-negotiable condition for peace. Iran had previously rejected the condition.

Burry also suggested that the expectations touted with respect to reopening of the Strait of Hormuz may also be overly optimistic, adding that it would still take “maybe a year or more for contracts and insurance to adjust fully to a new reality” while also noting that oil prices were still pressured even when the Strait was open before the war.

At the time of writing, oil futures were down more than 4%, trading at the early $80s level per barrel. The United States Oil Fund (USO), an exchange-traded fund that tracks the performance of West Texas Intermediate (WTI) light, sweet crude oil, was down more than 4% in the overnight session on Sunday, while the Light, Sweet Crude Oil Futures (CL_F) were down nearly 5%.

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