Euro Shorts Are The Next ‘Widow Maker’: Gave

Eurozone weaknesses, including the ongoing threat of sovereign debt crises and plenty of banks that are believed to be insolvent, have led many people to predict that the euro should start to fall against the dollar, but investors taking a short position haven’t had much success. “The Japanese government bond market is famously known as a ‘widow maker,’ since shorting it has crushed so many macrotraders,” writes Gavekal Research Chairman Charles Gave.  But now, “it looks like the euro is competing to grab that title for itself.”

“If the euro is going up, it is probably because...