Loading...
Most Recent Stories

Grantham: Stocks and Bonds are Extremely Expensive

Jeremy Grantham of GMO had some good macro thoughts on the markets over the weekend in Barrons.  To summarize his views:

  • The¬†Greenspan-Bernanke-Yellen Put is well in place and driving irrational sentiment.
  • The bullishness at present is driven primarily by institutional investors.
  • US stocks are “65% overpriced.”
  • US stocks won’t be in a “true bubble” until they’re 100% overpriced.
  • GMO’s 7 year forecast continues to call for poor equity market returns.
  • GMO has an equity weighting that “will be down to about 38%” by October if nothing changes this year.
  • Bonds of all types are much riskier in this environment than many think.

Read the full piece here.

Comments are closed.