From Barrons: Like the Bernanke Put, and the Greenspan Put of yesteryear,
the smart-money put can be relied on to prevent stocks from falling too far. A
put option offsets declines when associated securities fall, by allowing the
owner to sell—"put" in options jargon—them to someone at a preset
price.
Unlike the Bernanke and Greenspan puts, the smart-money put
is harder to quantify, but it clearly exists, even if it wasn't minted by a
central bank.
A key fact of the 2012 stock market is that many
sophisticated investors—the supposed "smart money"—have missed the
rally, which has boosted some stocks by more than 50%. Because the eyes of the
sophisticates are fixated on Europe's economic problems, and their minds are
searching for data to dispel evidence of a U.S. recovery, many of the funds and
accounts they run are trailing their benchmarks…..
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