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 corporate profit margins driven by globalization, government-supported corporate influence, low rates and leverage. Ominously citing the Keynes quote, “the market can stay irrational longer than the investor can stay solvent”, Grantham signs off saying that in terms of a move back to pre-1997 trends of profitability, interest rates, and pricing: “it seems likely that we will have a longer wait than any value manager would like - including me.” Read the report in full here: (VIEW LINK)