Just admit it: most institutional managers simply missed the rally since March. Now in order to keep their jobs or get higher compensation, they have every incentive to get into the market even when the market is already overpriced.
This is one of the main reasons why we had bubbles in the first place: investment managers compete for portfolio performance with their peers --- as long as the party is on, they will have to keep dancing.
I am afraid we are likely to head into another asset bubble.
(click to watch; source: FT)
