When bad things happen to good stock markets
Even a single year ago, this sort of euphoric piling on would not have occurred. The investors driving the bull market from 2011 to 2016 were a generally disciplined bunch. They were also, if you recall, fearful about the effect Donald Trump would have on the market. Even if it seems plausible to you that a large number of money managers would lie about their real intentions, that clearly isn’t what happened in this case. Following Trump’s win, there was a huge wave of selling, seemingly from the market’s usual suspects, followed by a huge wave of buying from… whom? Some of the money must have come out of the bond market, but more seems to have come out cash. Who’s cash? Well, I have a hunch, though it might be considered a tautology: the money came from people with lots of money.
America has lots of rich people. It even has a great many wealthy people. In my experience, it is a relatively small number of investment managers who handle the money of wealthy families. These operations, whether independent or under the umbrella of large investment houses, tend to be handled through what are called single family offices, or SFOs.