What is the Smart Money

We have often heard of talk about Smart Money and Dumb Money.  We wish more investors were in the Smart Money category. However, what is Smart Money? 

According to Investopedia, the Smart Money is defined as cash invested or wagered by those considered to be experienced, well-informed, “in-the-know”, or all three.

 

 

Valuation vs. Time

                Source: Dr. Jean-Paul Rodrigue Dept. of Global Studies & Geography Hostra University.
         Modified by Blogger

           We believe many of you have seen the above chart before.  People often confuse the Smart Money, with big money (institutional investors), but actually they are quite different. Usually the Smart Money sorts things out, before everyone else becomes bewildered. The Smart Money possesses ample resources and tools, has considerable expertise, is experienced, and especially has the capability to deal with a crisis. The Smart Money is given an edge over other investors, and has already taken advantage of the discounted prices before everyone else takes action.

          Credited to: http://www.investopedia.com/terms/s/smart-money.asp

          If you want to know more about the Smart Money, you can read more here:

http://top5indicators.blogspot.com/2013/09/global-futures-bottom-indicator-gfbi.html

http://top5indicators.blogspot.com/2013/09/how-to-follow-smart-money-and-profit.html

http://top5indicators.blogspot.com/2013/09/how-to-catch-market-bottom-by-using.html

 

     Thanks for your visiting and reading.

     Have a great day!