Jeremy Grantham’s GMO has published its fourth-quarter update, offering a contrarian position on Europe and outlining its strategies as we head into 2012. The firm says it moved “incrementally into Europe” in the fourth quarter of 2011, adding. “Selectively, slowly, prudently, of course, but the general belief is that markets have overreacted, and this always [...]
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Tag Archives: Jeremy Grantham
Is There A Hole In The CAPE?
February 2, 2012
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While some prominent strategists, including Jeremy Grantham and Robert Shiller, have pointed to the 10-year cyclically-adjusted price/earnings ratio (“CAPE”) as evidence that stocks (in particular the S&P 500) are very overvalued, Wharton Professor Jeremy Siegel says there’s a flaw in the metric. The flaw, Siegel said at a TD Ameritrade Institutional conference, involves the 2008 year, [...]
Read moreGrantham’s GMO Not As Gloomy On Stocks As You Think
December 30, 2011
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While Jeremy Grantham’s GMO has been gloomy about the outlook on stocks, the firm’s head of asset allocation says there are also good opportunities in the market right now. “We think there is money to be made,” Ben Inker tells The Boston Globe. “There’s plenty of stuff to be worried about. [But] there’s actually a [...]
Read moreThe Gurus Dig Deep For Resource Plays
December 12, 2011
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In his latest article for Nasdaq.com, Validea CEO John Reese takes a look at some natural resource-related stocks that look attractive right now. “With the world population continuing to rise, global economies running for the most part on non-renewable resources, and central banks injecting huge sums of money into the financial system in recent years, [...]
Read moreGrantham Gloomy, But Not Running From Equities
December 6, 2011
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GMO’s Jeremy Grantham sounds quite gloomy in his latest quarterly letter, though he advises a “near normal” allocation to equities and says high-quality U.S. stocks are “relatively cheap”. Grantham says that both debt overhangs and structural problems — such as income inequality, an aging population, deficiencies in infrastructure and education, and the government’s inability to [...]
Read moreGrantham, Doll Offer Different Takes On Margins
November 29, 2011
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Are historically high profit margins for U.S. firms sustainable, or will they come bouncing back to the mean — and throw a wrench into the stock market in the process? Blackrock’s Bob Doll and GMO’s Jeremy Grantham have very different takes, according to Bloomberg. Doll says a weak job market and labor-saving technologies have helped [...]
Read moreGrantham Gloomy, But Finding Value
September 21, 2011
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GMO’s Jeremy Grantham is predicting more gloom for the U.S. economy, but he says stock valuations are “finally” such that investors can build portfolios of equities with potential for solid long-term returns. “If we adjust earnings to normal and apply an average P/E, you can finally build a decent portfolio today of global equities at [...]
Read moreReese, Grantham, and Resource Stocks
August 16, 2011
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Discussing Jeremy Grantham’s warning on dwindling natural resources, Validea CEO John Reese takes a look at some resources-related stocks that get high marks from his “Guru Strategies” in his latest column for Canada’s Globe and Mail. “Mr. Grantham was one of the few to warn of both the Internet bubble in the late 1990s and the [...]
Read moreGrantham Buying for First Time Since ’09, But Offers Several Warnings
August 12, 2011
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Jeremy Grantham says his firm is now “very modest buyers” of equities for the first time since mid-2009. “At the close on August 8, a slightly cheap equity portfolio could be put together comprised of U.S. high quality, emerging markets, Japan, Italy, and European growth stocks,” Grantham writes in the second half of his quarterly [...]
Read moreGrantham: Resource Shortages Are Looming — Deal with Them Now
July 25, 2011
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GMO’s Jeremy Grantham continues to warn about global resource shortages, saying in his new quarterly client letter that soil erosion and limited supplies of potash and phosphates “are the real long-term problems we face”. Grantham says we have the means and brain power to live sustainably. “The problem is with us and our focus on [...]
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