atans1

Equities: Sluggish Recovery?

In Economy, Investments on 09/12/2011 at 5:52 am

Jeremy Grantham, chief investment strategist of GMO, writes in his latest quarterly letter that the bursting of the two most recent equity bubbles was historically unusual in that stock prices soon recovered to their trend. The next bust, he writes, may not be as forgiving.

http://www.gmo.com/websitecontent/JGLetter_ShortestLetterEver_3Q11.pdf

Another way of looking at the situation is that these two recoveries were bear traps.

Note he called the 2008 crisis before it was fashionable, and he was never someone who was forever and a day prophesying the end is nigh.

About these ads
  1. 2000 to 2016 — secular bear.

    2016 to 2032 — secular bull.

    Golden Age ahead. No worries.

    At least this time Grantham short & sweet, not chiong heh. But he forgot his latest 7-yr forecast at the end. Too busy thinking about winter holiday in the Jungfrau.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 210 other followers

%d bloggers like this: