Jeremy Grantham is Now a Modest Buyer of Equities

By on August 11, 2011

GMO’s Jeremy Grantham recently commented in his latest letter (August 2011) that his firm is modestly buying equities for the first time since mid-2009.

Despite his view that the S&P 500 is worth a mere 950, Grantham is of the opinion that stocks (in some select areas) offer a better risk/reward than the available alternatives (mainly fixed income).

Grantham is interested in, 1) Real Estate (he says ‘land,’ as in forest and farmland), 2)  Commodities (hydrocarbons, metals, and fertilizer) and, 3) Emerging Markets stocks (reckons they will outperform all but high quality equites by 4-5% real per year).

As always, investors should read Grantham’s complete letter as it is impossible to summarize it all the juicy details in a couple of paragraphs.  It (2 parts) is available for free at GMO.com.

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