So stop calling the current vogue for betting against the greenback a “crowded short”, says boutique brokerage Aviate Global.
And their logic is hard to fault. As the world’s de facto currency the world is, naturally, massively net long dollars. Hence:
…the entire planet is already long dollars (the most crowded trade of all time), because everybody holds them from central banks, to drug lords, to Zimbabwean taxi drivers… So which trade is truly “crowded”?
And like all crowded trades, things can get very messy indeed if the crowd starts to rush for the exit.