The term "smart money" refers to individuals or investors who possess or are seeking profitable financial opportunities. In phonetic transcription, "smart money" can be written as /smɑrt ˈmʌni/. The word "smart" is pronounced with a long "a" sound followed by the "r" sound, while "money" is pronounced with a short "u" sound and ends with the "ee" sound. This phrase has its roots in Wall Street lingo and is commonly used in financial news and advice to describe experienced investors who make savvy investment decisions.
Smart money refers to the capital invested by informed and experienced investors, or individuals and institutions with superior knowledge and insight into financial markets. These individuals possess a deep understanding of the intricacies of investing and have a proven track record of successful investments. The term is typically associated with professional investors, hedge funds, venture capitalists, and other institutional investors who are known for making well-informed decisions based on thorough analysis and research.
The distinguishing characteristic of smart money is the ability to anticipate and capitalize on investment opportunities before they become widely known or recognized by the general public. These investors often have access to exclusive or insider information, allowing them to gain an edge and make informed investment decisions. They possess a keen ability to identify undervalued assets, uncover emerging trends, and accurately predict market movements.
Smart money investors are considered to be strategic and sophisticated, employing a variety of investment strategies and techniques to maximize their returns while managing risk. Their involvement in a particular investment or company is often seen as a positive sign, as it suggests that the investment has undergone meticulous scrutiny and due diligence.
In summary, smart money refers to the capital invested by knowledgeable and experienced investors who possess a deep understanding of financial markets, make well-informed decisions based on research and analysis, and consistently achieve superior investment results.
Money paid to relieve from some unpleasant engagement, particularly from military service; in mil., money allowed to soldiers and sailors for wounds and injuries received.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
The term "smart money" originated from the world of gambling, particularly horse racing. It originally referred to the bets made by experienced and knowledgeable gamblers who were considered to have an edge or advantage over other bettors. These individuals were said to have a deeper understanding of the game, track conditions, and other relevant factors, allowing them to make more informed and profitable bets.
Over time, the term "smart money" extended beyond the realm of gambling and entered the broader financial world. It came to describe money or investments made by seasoned investors or professionals who were believed to have superior knowledge, expertise, and insights in the financial markets. Thus, "smart money" suggests investments made by those with insider information or sophisticated analysis, and it is generally associated with successful and profitable investments.