Grantham Sets the Record Straight

In a recent Barron’s article, Boston-based asset management firm GMO’s co-founder Jeremy Grantham sets the record straight after what he calls “a few misquotes and misunderstandings by journalists.” The journalists, writes Grantham, implied that he believes high share prices are here to stay and that “regression to the mean has ended. This is, of course,” […]

Grantham Says Higher Valuations Will Remain

“The market can stay irrational longer than the investor can stay solvent”, writes Jeremy Grantham in a recent Barron’s article. Grantham addresses the fact that, since 1996, the market mean PE ratio has risen by 65% to 75%. He covers various periods in history, respective rises and crashes, showing that while there are always oscillations […]

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 […]

Grantham: Current Market is an “Anti-Bubble”

The U.S. market is unlikely to “go bang” the way some have in the past, says Jeremy Grantham, chief investment strategist and co-founder of asset management firm GMO. In a recent Barron’s article, Grantham argues that we are not facing a “classic bubble, not even close.” In Grantham’s opinion, it is more likely that a […]

“Presidential Cycle” Stunted by the Fed says Grantham

The phenomenon of robust stock market gains during the third year of a president’s term—coined the “presidential cycle” by fund manager Jeremy Grantham—may have been “killed off” by the Fed, according to an article in the Financial Times. Research conducted by Grantham, founder of the GMO fund management group in Boston, analyzed stock gains during […]

Jeremy Grantham’s Outlook for 2016 and Beyond

Jeremy Grantham authored a piece for Barron’s recently in which he argues that “the positive effects of low resource prices are underestimated,” maintains that we are not in a bubble and thus “a major market break [is] unlikely” to occur yet,  and suggests that the longer-term forecast is “rather depressing.” Looking back at 2015, Grantham […]

Jeremy Grantham, Jonathan Jacobson, Seth Klarman and Jeffrrey Vinik: “Below the Radar” Philanthropy of Top Investors to Social Causes

The Boston Globe profiles philanthropy by leading investors. Jeremy Grantham’s foundations, including the $377 million Grantham Foundation for the Protection of the Environment, reflect a movement toward “making big bets on social change philanthropy,” according to Paul Grogan of the Boston Foundation. This is a shift apparent in Grantham’s own remarks: he noted that giving […]

A Bearish View from GMO’s Grantham

Ben Inker and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. issued a quarterly letter suggesting the bull market cannot last much longer. Inker writes that the U.S. has been outperforming for decades but attacks the idea that US stocks are inherently superior even as they grow more expensive. “We cannot completely reject the […]

What Worries Jeremy Grantham Now

Given that he was one of the few to warn about both the Internet bubble and the housing and credit bubble before they burst, Jeremy Grantham’s worries and concerns about the economy and stock market carry a lot of weight. So what is GMO’s front man concerned about these days? Resources. In an interview with The […]

Grantham Talks Growth, Markets, and More

GMO’s Jeremy Grantham recently sat down for a lengthy interview with Charlie Rose, and offered a number of interesting takes on the economy and stock market. Grantham says that the great U.S. franchise company stocks are a bit expensive, but that the balance of the U.S. market is very expensive. Overseas in emerging markets, the […]