Monetary Policy as a Weapon of Mass Destruction

"A man's gotta do what a man's gotta do" has negative connotations. And for good reason. It suggests resignation, lack of any choice or simply the absence of care for the consequences. The forced grasp for yield in today's markets very much brings the phrase to mind. Investment managers across the board are repeatedly compelled to chase it at painfully bad levels.

Trying not to, once again, fall hopelessly behind their benchmarks, actively managed funds must scramble. They're so often underinvested because in the deep recesses of their hearts they believe it represents no more value than an opportunity to flip.

"If I'm going to go out of business anyway, I might as well close my eyes and buy" is an investment thesis that works until it abruptly doesn't.