Jeremy Grantham on the Next Big Investment Drivers

In a recent interview with Wealth Management.com, the founder of management firm GMO shared his insights on how the market has changed and where opportunities are going forward. Between 1935 and 2000, says Grantham, the market was “orderly” and experienced “mean reversion,” but it has since become more complicated. “Since 1998, price-earnings ratios have averaged 60 percent higher than the prior 50 years, and profit margins have averaged 20 to 30 percent higher. That’s a powerful double whammy,” he says. Grantham says that while the current market “doesn’t feel like a bubble,” we are “climbing the wall of worry.” He […]