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: