If you are wondering why we can’t seem to dip so far, this is it.
CTA recently pushed us higher and fund manager will likely be buying the dip or chase an all time high breakout.
The institutional world relies on a “never be the outlier” model. The name of the game isn’t to outperform but to never underperform the peer group. As long as you are as bad as your neighbor your AUM is safe.
As the market recovers and exposure is low, fund managers risk their AUM by not chasing. Also keep in mind they have to create the perception of “managing” so investors feel like they are paying for their management fee.