Most crowded trades

[DSAbug]

In summary.. Too many people are long the general market, short the yen and short precious metals..


http://www.zerohedge.com/news/2013-05-06/most-crowded-trades

 

[pmbug]

 

[DCFusor]

What a pretty picture, Bug!

Seems most crowded trades end in tears - the exit ramp gets full too easily.
So I tend to bet against them. The trick is timing, though. Too soon and get your face ripped off - they work until they don't - yet it's also easy to be too late since when the collapse - it's very fast.

So you spend a long time paying detailed attention without actually doing anything, which is kind of boring - hard to do well. Feels like earning the money the hard way.