Is it a bubble or a paradigm shift?

Livewire News

Livewire

Jeremy Grantham, co-founder and chief strategist of the USD120 billion asset allocation specialist GMO, has released and fascinating and candid letter to investors this quarter. He is well known for having accurately called the Tech Bubble and the US Real Estate Bubble. “Giant bubbles are easy to spot statistically but hard to call from a career risk perspective. It is easy to be early, and being early may lose you your job, your clients, and your credibility.” Despite his past success, he failed to foresee the end of China’s growth in commodity demand. He explains how promises of a ‘paradigm shift’ have consistently fooled investors into thinking a temporary change is permanent. “Every major bull event is called a paradigm shift, but they almost never exist. Almost never. But not never, ever.” In the attached letter he explores these issues in greater depth, and identifies one area that he thinks will undergo a true paradigm shift in the coming years.


Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.