Money and Finance
- Jeremy Grantham: Learning To Live With A Stock Bubble
Link to: Jeremy Grantham: Learning to Live With a Stock BubbleFor Jeremy Grantham, founder and strategist at GMO, a Boston-based money manager that oversees about $120 billion, it hasn't been easy watching equity markets rack up huge gains. As...
- A Few Good Reasons To Hoard Some Cash Now - By Jason Zweig
The stock market is near record highs. More money came into U.S. stock mutual funds the week of Oct. 23 than during any other week since 2007. Initial public offerings like Twitter are booming. So have you considered keeping more of your assets in cash?...
- Dalio's World
Found via The Big Picture. Ray Dalio, fabled hedge-fund manager, says the U.S. has done a "beautiful" job delevering, but sees a 30% chance Europe will stumble badly. It's hard to imagine anyone navigating the rough seas of the past decade more ably...
- Gmo’s Market Outlook: "disappointingly Overvalued"
Opportunities across US and foreign assets classes are unattractive, according to Ben Inker, the head of asset allocation at the Boston-based global money manager Grantham, Mayo, van Otterloo & Co. (GMO). Neither the equity nor fixed income markets...
- Bruce Berkowitz Stays In The Sunshine
Bruce Berkowitz must be disappointed that the current Olympic Games program doesn't include professional money management in the competition. If it did, the veteran stock picker's neck would be weighted down with gold right now. -Berkowitz is...
Money and Finance
Barron’s interview with Ben Inker: The Best Bets in a Dangerous Global Market
Lucky sevens? Not so fast. Asset manager GMO's seven-year forecast doesn't show investors having much luck over that span, much less big returns. The Boston-based value shop, which oversees about $112 billion, doesn't like the broad U.S. stock market, which it maintains is too reliant on expanding price-earnings ratios, and it doesn't see great things ahead for bonds, either, given how low interest rates are. Two of the brighter spots, in its view, are high-quality stocks in the U.S. and emerging-market equities. For insight into the firm's views, Barron's spoke recently with Ben Inker, co-head of asset allocation at GMO, where he's worked for 21 years. The 43-year-old investment pro and his colleagues believe that assets' returns eventually revert to their mean, and they insist that will be the case for U.S. stocks, which have enjoyed big gains in recent years. The GMO Benchmark-Free Allocation Fund III (ticker: GBMFX), whose minimum investment is $10 million, has a 10-year annual return of 9.88%, besting 84% of its Morningstar peers. A much newer fund with an identical strategy—but just a $1,000 minimum—is Wells Fargo Absolute Return fund (WARAX).
Barron's: Where are you finding opportunities in the market?
Inker: Our biggest takeaway, when we look around the world today, is that there are no cheap assets. There is nothing out there that is priced to make lots of money. There is definitely stuff to do; there are assets which are OK and assets which are not. So this is one of those times where we find it relatively straightforward to know what to own, but it is harder to know exactly how much of each asset class you want to own.
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Related previous post: GMO's 3Q 2013 Letter
- Jeremy Grantham: Learning To Live With A Stock Bubble
Link to: Jeremy Grantham: Learning to Live With a Stock BubbleFor Jeremy Grantham, founder and strategist at GMO, a Boston-based money manager that oversees about $120 billion, it hasn't been easy watching equity markets rack up huge gains. As...
- A Few Good Reasons To Hoard Some Cash Now - By Jason Zweig
The stock market is near record highs. More money came into U.S. stock mutual funds the week of Oct. 23 than during any other week since 2007. Initial public offerings like Twitter are booming. So have you considered keeping more of your assets in cash?...
- Dalio's World
Found via The Big Picture. Ray Dalio, fabled hedge-fund manager, says the U.S. has done a "beautiful" job delevering, but sees a 30% chance Europe will stumble badly. It's hard to imagine anyone navigating the rough seas of the past decade more ably...
- Gmo’s Market Outlook: "disappointingly Overvalued"
Opportunities across US and foreign assets classes are unattractive, according to Ben Inker, the head of asset allocation at the Boston-based global money manager Grantham, Mayo, van Otterloo & Co. (GMO). Neither the equity nor fixed income markets...
- Bruce Berkowitz Stays In The Sunshine
Bruce Berkowitz must be disappointed that the current Olympic Games program doesn't include professional money management in the competition. If it did, the veteran stock picker's neck would be weighted down with gold right now. -Berkowitz is...