“It’s All Dumb Money Now”

So this kind of makes you wonder if there’s any such thing as “smart” money.

Because clearly asset managers (who, as of last Tuesday, were the longest the euro they’ve been in at least a decade) and specs (who had trimmed their euro shorts to basically flat) weren’t all that “smart” given the fact that EURUSD turned out to be the very definition of a “sell the news” trade following Emmanuel Macron’s Sunday triumph.

But as it turns out, the “dumb” money was also… well… not too “smart,” because a quick look at the data shows the iShares MSCI Eurozone ETF (ticker “EZU”) saw in its largest inflows ever on Friday:

Flows

Here’s how that turned out:

Dumb

Evidently, it’s all dumb money now.

Or, as Bloomberg’s Richard Breslow put it earlier today:

Well today’s get rich quick scheme didn’t work out so great.

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