~ Bob Rodriguez, interview with Grant Williams and Stephanie Pomboy, The Grant Williams Podcast, 37:38 mark, May 27, 2020
Oct 9, 2020
Bob Rodriguez on the pressure on portfolio managers to keep playing the casino game
So long as you have [portfolio] managers willing to, shall we say, continue to keep money on the craps table with a roll of the dice, because if they don't they cannot be at the craps table. You cannot stand there at the craps table and occupy a spot. You will be moved out because they need somebody else to order drinks and lose money. So what do the managers have to do? They have to play the game. And this goes up and down the line. Better to fail with the crowd than to try to succeed away from the crowd... I think a whole generation or two are going to have to be reintroduced to reality. You have probably close to 40% or 50% of the money managers in the industry today that have never seen a normal yield curve! They've only seen a manipulated yield curve. They are learning to invest in an alternative universe. I don't believe that universe is sustainable, and which means they will be taken out.