Bigger picture Grantham makes the case the Fed can take this market to S&P 1500, and with the heartfelt belief that the 3rd year of a presidential cycle is the best,along with The Bernank Put sitting as support for the market, animal spirits shall remain high. At least through October. Of course longer term we have experienced multiple times in just the past decade what happens when an asset class subsidized by the Federal Reserve returns to a 'free market' trajectory, hence his caution in longer term time frames.
As always, *it* will only matter when it matters - and until then we party like Romans from the 2nd century AD, and everyone can be an investment genius.
Please click 'fullscreen' for the easy way to read this:
hat tip Zero Hedge
[Nov 11, 2010: [Video] Jeremy Grantham Speaks]
[Oct 27, 2010: Jeremy Grantham GMO October 2010 Letter - Night of the Living Fed]
[Aug 3, 2010: Jeremy Grantham GMO July 2010 Letter - Summer Essays]
[Apr 26, 2010: Jeremy Grantham GMO April 2010 Letter]
[Jan 26, 2010: Jeremy Grantham GMO January 2010 Letter]
[Oct 27, 2009: Jeremy Grantham GMO October 2009 Letter]