Something tells me there are some serious blow-ups on the horizon for professional managers.
I feel this because stock market returns have been explosive – specifically in high beta, high octane names – and investors’ expectations for future returns tend to extrapolative. As profits increase, so too do their beliefs that even more gains are coming. In an atmosphere like this people begin to lose perspective and become accustomed to the miraculous. They push those who manage money for them for the unattainable and professionals eventually succumb.
Read Full Article »