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Jeremy Grantham: Stocks Still Aren't Cheap

Morningstar is featuring an article this morning, by By Russel Kinnel (date stamped: 10/14/08 at 6:00 a.m.), bearing the headline:

"Grantham: Stocks Haven't Been This Cheap since 1987. Market seer Jeremy Grantham predicted financial debacle, and now he's buying."

It goes on to say:

"Nonetheless he's now more constructive about equities because he believes they are trading at severely depressed prices. He said that at the end of Friday, global equities were trading as cheaply as they had been since the 1980s. In fact, the U.S. had traded below GMO's fair value estimate--though as we spoke Monday morning a rally had brought it back to around fair value. Specifically, he prefers blue chips to small caps or highly leveraged companies."

Grantham further states:

"We're buying carefully and slowly," Grantham notes. Why slowly? "When bubbles correct, they usually overcorrect so that the market is selling well below fair value."

Draw your own conclusions based on the contradictions in information provided by Barrons vs. Morningstar.