GMO’s Jeremy Grantham is out with his latest quarterly paper and as usual its a must read, he goes through his thoughts on the economy, what Yellen is likely to do during her time at the Fed, earnings vs valuations, timing bear markets and so forth. One point he does make is that he (along with several other market commentators) have taken the viewpoint that the US equity market is likely to rally strongly over the net 6-12 months, however he has his reservations and I’ll finish this post with his final comment. As always see the link below if you’d like to read the full letter.
Be prudent and you’ll probably forego gains. Be risky and you’ll probably make some more money, but you may be bushwhacked and, if you are, your excuses will look thin. Your call. We of course are making our call.