Quote · Excess Returns
We Asked GMO’s Head of Asset Allocation Why This Bubble is Easy — But Investors Will Get it Wrong
Where this was said
What GMO learned from managing through past bubbles
At 18:36 · chapter starts 17:02
Ben Inker shares what GMO learned managing portfolios through the dot-com, GFC, and 2021 bubbles, including the perverse dynamic of clients firing cautious managers at market peaks [1] — Ben Inker "Even if a manager is certain a bubble exists, they must run a portfolio that doesn't look insane if the bubble doesn't burst quickly. Clien…" 17:40 .
Even if a manager is certain a bubble exists, they must run a portfolio that doesn't look insane if the bubble doesn't burst quickly. Clients will fire you and hire the aggressive growth manager at the top — maximizing their own losses. Career risk is the bubble's greatest ally.
