In his excellent new quarterly letter, ‘Oh, the good old days’, Legendary value investor, Jeremy Grantham, rips into the reasons and ramifications of the richly valued S+P500 that has had an average PE 65% higher in the twenty years since 1997 than the period before. He blames abnormally high US... Show More
We bubble historians have been a bit brainwashed by our exposure in the last 30 years to 4 of the perhaps 6 or 8 great investment bubbles in history: Japanese land and Japanese equities in 1989, US tech in 2000, and almost everything in 2007. The US market today is... Show More
So said Arjun Divecha of GMO. Show More
In the latest GMO quarterly report Jeremy Grantham explains why he sees the recipe for a veritable explosion of financial deals. Grantham explains that two well identified markers, being low cost of debt and high profit margins, are already in place. However, the third reason that has the most influence... Show More
Jeremey Grantham's investment team at GMO publishes a 7 year asset class forecast. These forecasts have an exceptional track record as to their accuracy and form the basis for allocations in their value strategy. Their most recent update presents a bearish outlook with all asset classes forecast to underperform the... Show More
Jeremy Grantham of GMO says there are two good standards for a bubble. One is boring statistics, and the other is an exciting behavioural frenzy, on which so many good books have been written. And based on the boring statistics, the data is really very clear: We are not even... Show More
GMO: The S&P is over-valued on every model. Having spent a large proportion of my career working at investment banks, I'm well aware of Stockbroker Economics, the second tenet of which is The market is always cheap. Over the years I've witnessed many attempts by the practitioners of this dark-art... Show More