Jeremy Grantham’s Latest Views

By on October 29, 2009

Jeremy Grantham has a new quarterly letter posted at GMO.com. Grantham provides familiar and humorous criticism of the powers that be (the ones largely responsible for the economic mess and extremely well renumerated for their brilliance).

Grantham sees an anemic stock market over the next seven years with the possibility of a major cratering next year. He believes the market is currently overvalued by about 25 percent and characterizes the recent rush into risky assets as “silly.”

Grantham’s team at GMO has been exceptionally good at forecasting the performance of asset classes in their frequently issued seven year forecasts. Grantham points out that the accuracy over the 10 overlapping years ending in October 2008 has been so good that it could have only been performed one in 100,000 tries by chance. Currently, Grantham believes U. S. high quality stocks are the most attractive area in the market.

Source:

http://www.gmo.com/websitecontent/JGLetter_ALL_3Q09.pdf

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