This is a “real McCoy bubble…the chutzpah involved in having a bubble at a time of massive economic and financial uncertainty…”

Jeremy Grantham had some eye popping comments in his recent interview with CNBC, summarized here by Market Watch.

Jeremy Grantham is no investor lightweight. The venerable Mr. Grantham of GMO predicted the last few market bubbles, in the years prior to 2000 and 2008. Not only was he prescient before these market collapses but also when the last market collapse was over. In March of 2009, within a week of the market low, Mr. Grantham noted that the selling was overdone, it was time to buy. 

A few more of his most noteworthy quotes from the CNBC interview:

  • “A good number (allocation to stock) for the US market should be zero.”
  • “Developed countries are not cheap but cheaper than the US. Emerging markets are cheap by any measure.”
  • “Sell US (stock) 100% and buy emerging and go away for a few years…”
  • Regarding US stock allocation – “I think a good number now is zero and less than zero might not be a bad idea if you can stand that”

Comments like that mean you need a solid investment plan in place, if you don’t already have one.

Please don’t hesitate to contact me with any questions.

At Bartley Financial, we care about way more than your finances. We care about the life you’re trying to live; finances are just a piece of that. Call us anytime if you need fresh ideas for your finances or help in achieving your goals. We’re happy to help!