Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:GMO's Grantham Expects Another Bubble Not Rated 1.0 Email Routing List Email & Route  Print Print
Wednesday, January 27, 2010

GMO's Grantham Expects Another Bubble

by: Daniel Tovrov

Fundsters wondering about the overall fate of the economy may want to take a look at an article in Wednesday's Wall Street Journal. Hailed as "the investment guru" in the Wednesday "Fund Track" column, GMO Funds' chief investment strategist and former chairman Jeremy Grantham thinks that U.S. stocks are quickly heading into another bear market.

"Once again, the Fed is playing with fire," Grantham wrote in his quarterly letter to clients.

Grantham believes that the stimulus policies that boosted the economy, like low interest rates and "easy money," are now inflating the next financial bubble. On top of that, high stock prices are projecting a false picture of market stability, giving investors too much confidence, especially after 2009's market rally.

Although "they" say that past performance is not an indicator of future results, Grantham's recent track record makes him a hard voice to ignore. According to The Journal, he warned of dangerously high stock prices in 2007, and then urged investors to buy in March 2009, predicting the spring rally.

Grantham and GMO, expecting low returns in the next demi-decade, are sticking to their bearish strategy and trimming down on equity. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

1.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use