In the latest GMO quarterly report Jeremy Grantham explains why he sees the recipe for a veritable explosion of financial deals

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 on his thinking relates to the stage of the current economic recovery. Grantham says; The economy, despite its being in year six of an economic recovery, still looks in many ways like quite a young economy. There are massive reserves of labor in the official unemployment plus room for perhaps a 2% increase in labor... There is also lots of room for a pick-up in capital spending that has been uniquely low in this recovery... The very disappointment in the rate of recovery thus becomes a virtue for deal making. The full quarterly is available here: (VIEW LINK)


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