Jeremy Grantham, Co-Founder of Legendary AM shop, GMO, says we're in a bubble of "epic proportions"

Has anyone seen this recent interview where Grantham is basically saying that there will be another big crash in the soon future and to rebalance your portfolio into 70% emerging market value stocks and 30% cash? 


Any thoughts? I can see where he's coming from based on the sheer amount of outstanding margin debt, historical highs in PE ratio, continued QE, and very irrational retail behavior. However, all we all know, the markets can stay irrational much more than we can stay solvent. What is your portfolio like at the moment?


Full Youtube interview here: 


 

beat me to it. I sincerely hope grantham doesn't become john hussman who said in october 2009 that stocks aren't cheap enough

their 2 largest funds (GQETX and GBMFX) are still down on a 5y basis and their quality fund is down right in line with S&P. while their benchmark free fund is down less than everything this year you have to ask yourself if it's worth it to lag for so long. rather, I like howard marks's mantra of staying mostly fully invested (see below). also, they come from the same generation and howard's performance far outpaces jeremy's

Because we do not believe in the predictive ability required to correctly time markets, we keep portfolios fully invested whenever attractively priced assets can be bought. Concern about the market climate may cause us to tilt toward more defensive investments, increase selectivity or act more deliberately, but we never move to raise cash. Clients hire us to invest in specific market niches, and we must never fail to do our job. Holding investments that decline in price is unpleasant, but missing out on returns because we failed to buy what we were hired to buy is inexcusable.

 

Impedit nesciunt qui voluptate et. Eum quod perspiciatis non quo architecto ea eius.

Laborum sed perspiciatis vitae impedit vitae similique doloribus. Est facere fugiat vero voluptatem aut consequatur. Aut nemo placeat perspiciatis sed. Aut tempora labore ut magni dolor aut. Et nisi reiciendis blanditiis aut nisi et.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”