“When you get to that kind of level of overheating, it’s just really a matter of time until you realize that you’re kind of like Wile E. Coyote running on air. And then you look down and the ground’s far below,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors.14 September 2020
“Chief executives have been much more downbeat in their outlooks than investors,” said Max Gokhman, head of asset allocation for Pacific Life Fund Advisors. “If you think that your future is dim but your stock is soaring then it makes sense to sell.”14 September 2020
The retail trading phenomenon has been so strong that even professional investors have had to adapt to its warping effects. Max Gokhman, head of asset allocation for Pacific Life Fund Advisors, a US fund manager, says he has now been forced to consider the impact of retail trading in companies that have become popular among everyday investors — such as airline stocks and Tesla.
Mr Gokhman likened professional investors to pilots manning a jumbo jet, while the retail traders are Icarus, the mythical Greek figure with wings of wax, flying alongside. “We know we can move altitude up and down and have sophisticated systems to change our exposure,” Mr Gokhman says. “But Icarus is just getting higher and higher, closer to the sun and inevitably Icarus — in this case the day traders — will crash.”14 July 2020