The "Meme Ursula Trading Top" (MUTT™️)
Important developments?
Mutt = a person who behaves in a silly or careless way. (Cambridge Dictionary)
Something important just took place that is worth paying attention to.
One of our best calls of the year was that the Trump - Zelenskyy meeting back in February was an important milestone both for the World and the Markets in general, especially for the Euro. We called it “The End of American Exceptionalism”, which triggered those who didn’t bother to understand the concept.
Since that meeting, the Euro has risen by >12%, which caught off guard the European Asset Allocators who were used to running their portfolios FX-unhedged, after years of Dollar outperformance, just like frogs in boiling water. We affectionately nicknamed these Asset Allocators as “Klaus”.
This one decision has saved us a considerable amount of money, being Europoors, as it allowed us to position for a stronger Euro / weaker Dollar.
But now we may be getting another Paradigm Shift, more of the trading type: