...Burbank is among a group of money managers who have been sounding the alarm for an impending liquidity crisis. In other words, if the market sells off again there simply won’t be enough participants to take the other side of the trade. In that situation, the market will face a precipitous decline if even a small amount of funds look to sell.
“I just believe that you need to change how you invest and how you think about the future now—not from a fundamental point of view, but do you have enough liquidity for a set of circumstances which may be completely opposite to what you think and what you’re being told?” he said.