Jeremy Grantham Says High Quality Equities Are Relatively Cheap

By on December 8, 2009

Mark Hulbert has written an article for the N.Y. Times highlighting the disparity in performance since the March lows between low-quality and higher quality equities. Data provided by Ford Investment Research indicates that coming off the bottom, there has never been a greater difference as the bottom fifth of the quality tier has gained 152 percent, while the stocks in the highest quintile have moved ahead 66 percent.

Hulbert also quotes Jeremy Grantham who believes its almost a certainty that higher quality stocks will outperform over the longer term.

SMA Comment: I’ve already noticed that high-quality large cap stocks have begun to outperform over the past month or so.


N. Y. Times

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