by Summary:
Jeremy Grantham sat down with Consuelo Mack at WealthTrack to expand upon his recent bullish comments about the US markets. However, far from being bullish, the essence of Grantham’s comments were extremely bearish, suggesting investors could expect only a couple of percent real return over the next couple of decades in US equities. The veteran investor also made bearish comments about the US bond market. His advice is to rotate out of US equities and pile into emerging markets, as much as you dare. It must be noted first that Jeremy Grantham has called a few stock market bubbles — the tech stock bubble of the 1990s and the global credit bubble of the 2000s, to be sure. And he was spot on in timing the 2009 market bottom. See my February and March 2009, Jeremy Grantham: “Pull the
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Mike Norman considers the following as important: economic outlook, Jeremy Grantham
This could be interesting, too:
Jeremy Grantham sat down with Consuelo Mack at WealthTrack to expand upon his recent bullish comments about the US markets. However, far from being bullish, the essence of Grantham’s comments were extremely bearish, suggesting investors could expect only a couple of percent real return over the next couple of decades in US equities. The veteran investor also made bearish comments about the US bond market. His advice is to rotate out of US equities and pile into emerging markets, as much as you dare. It must be noted first that Jeremy Grantham has called a few stock market bubbles — the tech stock bubble of the 1990s and the global credit bubble of the 2000s, to be sure. And he was spot on in timing the 2009 market bottom. See my February and March 2009, Jeremy Grantham: “Pull the
Topics:
Mike Norman considers the following as important: economic outlook, Jeremy Grantham
This could be interesting, too:
Mike Norman writes Tyler Durden — Jeremy Grantham Warns: “Brace Yourself For A Near-Term Melt Up”
Mike Norman writes Mark Weisbrot — The International Monetary Fund’s world economic outlook in theory and practice
Jeremy Grantham sat down with Consuelo Mack at WealthTrack to expand upon his recent bullish comments about the US markets. However, far from being bullish, the essence of Grantham’s comments were extremely bearish, suggesting investors could expect only a couple of percent real return over the next couple of decades in US equities. The veteran investor also made bearish comments about the US bond market. His advice is to rotate out of US equities and pile into emerging markets, as much as you dare.
It must be noted first that Jeremy Grantham has called a few stock market bubbles — the tech stock bubble of the 1990s and the global credit bubble of the 2000s, to be sure. And he was spot on in timing the 2009 market bottom. See my February and March 2009, Jeremy Grantham: “Pull the trigger” and More bullishness from Jeremy Grantham.
So when Grantham, Co-Founder and Chief Investment Strategist at Boston-based fund manager GMO, talks of how to deal with a market melt-up, we should listen. In contrast to his written piece a couple of weeks ago, the views Grantham expressed in his WealthTrack interview show someone who is quite concerned about overvaluation in US markets, both in absolute and relative terms. I want to pick apart what he said and follow it with the video of his conversation.Interesting tidbit.
He says,“the world has changed in many important ways I think,” suggesting he now believes corporate profit margins will not mean revert — that labor will not receive the same share of profits that it historically has done.Demand problem that will be viewed as an over-supply problem.
Credit Writedowns
Grantham: The essence of every bubble is wonderful fundamentals, euphorically extrapolatedEdward Harrison