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More from Grantham: Courtesy of the donkey-beatings, all global assets are once again becoming...

  • Thursday, February 7, 8:13 AM ET
    More from Grantham: Courtesy of the donkey-beatings, all global assets are once again becoming overpriced, but not uniformly so. Pockets of value can be found in emerging markets (EEM) and Japan (DXJ), and the great global franchise companies. Much of everything else is "brutally overpriced," with U.S. stocks selling at an implied negative 7-year imputed return ... As for fixed income - fugetaboutit!."
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This news story has 5 comments:

  •  
    Would you explain what a "implied negative 7-year imputed return" on stocks means?
    7 Feb, 11:11 AM Reply Like
  •  
    What does that mean? Some kind of implied price depreciation?
    7 Feb, 04:18 PM Reply Like
  •  
    Jeremy is so good with the obvious. GMO really likes lumber, and Emerging markets, but seem to overlook that both are depend on demand from developed economies which are, as he noted, screwed up playing games with their fiat just like it mattered.

    What is Congress worth to the economy, right now today, as a decision making machine: subtract 7% from the current Wilshire 5000 and you have what GMO thinks of the value US market.So Congress has an implied value of minus 7 % of the Wilshire today as a rule maker/decision maker for an economy. And they are suing Standard and Poors for fraud?

    Just a wonder they bother to open the markets these days; by the way, where is they located these days??
    7 Feb, 12:12 PM Reply Like
  •  
    However great an investor and money manager he may have been, he has been increasingly influenced by his opinions and political beliefs. In particular, he is obsessed with global warming, and factors that into to everything he analyzes and writes.

    He is simply not the objective guru he once was.
    8 Feb, 02:33 PM Reply Like
  •  
    'Overpriced' refers to the future, but is based on probabilistic interpretation of the past. The only way (albeit an insecure one, as is evth pertaining to the future) to judge prices is along the lines of exogenous indicators, such as interest differentials btw far end and near end on bonds e.g. or - of course - the number of storchs in a Minnesotan village. The latter may be the right one, but not accessible to the human brain, our concepts of causality are too narrow.
    17 Feb, 10:27 AM Reply Like
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