Money and Finance
- Gmo's Q3 2014 Letter
Link to: GMO's Q3 2014 Letter GMO's 3Q 2014 Letter includes Ben Inker's "Is This Purgatory, Or Is It Hell?" and Jeremy Grantham's "Bubble Watch Update" and "The Beginning of the End of the Fossil Fuel Revolution (From Golden Goose...
- Seth Klarman Quotes On Macro Thinking (1991)
This is from the 1991 Barron’s interview:“One thing I want to emphasize is that, like any human being, we can discuss our view of the economy and the market. Fortunately for our clients, we don't tend to operate based on the view. Our investment...
- Jeremy Grantham's 3q Letter: The Shortest Quarterly Letter Ever
I’ve been having one of those quarters where everything that can get in the way of writing and thinking does, notably our client conferences and unexpected travel requirements. Like many, I find it hard enough to write at the best of times. So sorry...
- Stock Picks From The Experts
Jeremy, you've written that stocks will get cheaper. - JEREMY GRANTHAM: If you look back at 1982 and 1974, the market was much cheaper than it is today. In '74 it was about 40% cheaper, and in '82 it was about 60% cheaper. Look at the bad...
- Jeremy Grantham On Wealthtrack
Jeremy Grantham was a guest on this week's Consuelo Mack WealthTrack for an exclusive interview and his television debut: Video - 11/21/08 - The complete interview is available HERE. .................... - Related previous posts: - GMO: Quarterly...
Money and Finance
Jeremy Grantham: The Fed is killing the recovery
Link to Fortune interview: Jeremy Grantham: The Fed is killing the recovery
And an excerpt from the interview that I think illustrates how to stay disciplined to one's process about as well as I've seen:
Okay, but then I guess that means you think stocks are going higher? I thought I had read your prediction that the market would disappoint investors.
We do think the market is going to go higher because the Fed hasn't ended its game, and it won't stop playing until we are in old-fashioned bubble territory and it bursts, which usually happens at two standard deviations from the market's mean. That would take us to 2,350 on the S&P 500, or roughly 25% from where we are now.
So are you putting your client's money into the market?
No. You asked me where the market is headed from here. But to invest our clients' money on the basis of speculation being driven by the Fed's misguided policies doesn't seem like the best thing to do with our clients' money.
We invest our clients' money based on our seven-year prediction. And over the next seven years, we think the market will have negative returns. The next bust will be unlike any other, because the Fed and other centrals banks around the world have taken on all this leverage that was out there and put it on their balance sheets. We have never had this before. Assets are overpriced generally. They will be cheap again. That's how we will pay for this. It's going to be very painful for investors.
- Gmo's Q3 2014 Letter
Link to: GMO's Q3 2014 Letter GMO's 3Q 2014 Letter includes Ben Inker's "Is This Purgatory, Or Is It Hell?" and Jeremy Grantham's "Bubble Watch Update" and "The Beginning of the End of the Fossil Fuel Revolution (From Golden Goose...
- Seth Klarman Quotes On Macro Thinking (1991)
This is from the 1991 Barron’s interview:“One thing I want to emphasize is that, like any human being, we can discuss our view of the economy and the market. Fortunately for our clients, we don't tend to operate based on the view. Our investment...
- Jeremy Grantham's 3q Letter: The Shortest Quarterly Letter Ever
I’ve been having one of those quarters where everything that can get in the way of writing and thinking does, notably our client conferences and unexpected travel requirements. Like many, I find it hard enough to write at the best of times. So sorry...
- Stock Picks From The Experts
Jeremy, you've written that stocks will get cheaper. - JEREMY GRANTHAM: If you look back at 1982 and 1974, the market was much cheaper than it is today. In '74 it was about 40% cheaper, and in '82 it was about 60% cheaper. Look at the bad...
- Jeremy Grantham On Wealthtrack
Jeremy Grantham was a guest on this week's Consuelo Mack WealthTrack for an exclusive interview and his television debut: Video - 11/21/08 - The complete interview is available HERE. .................... - Related previous posts: - GMO: Quarterly...