Never, ever be wrong on your own, said Keynes, succinctly explaining the herding (momentum)...


Never, ever be wrong on your own, said Keynes, succinctly explaining the herding (momentum) which drives asset prices far from their fair value. As Jeremy Grantham explains, GDP growth is within 1% of the long-term trend 2/3 of the time, yet the S&P is within 19% of fair value 2/3 of the time. "The market moves 19X more than is justified by the underlying engines!" (GMO Quarterly Letter, .pdf)

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Comments (2)
  • gerardo rodriguez
    , contributor
    Comments (10) | Send Message
     
    EXELENT JOB GUYS.
    18 Apr 2012, 05:22 PM Reply Like
  • gh1616
    , contributor
    Comments (864) | Send Message
     
    If Grantham says it, take it to the bank!!
    18 Apr 2012, 10:33 PM Reply Like
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