Wednesday, January 26, 2011

Jeremy Grantham GMO January 2011 Letter - Pavlov's Bulls

The always anticipated quarterly letter by GMO's Jeremy Grantham is out, and I've embedded the 13 page piece below.  He does a quick review of the past year, a look forward to the year (plus) ahead, and then a quite in depth piece on bubbles from a value investors standpoint.  If you only have a few minutes to spare I'd recommend page 4 for a top down overview.   If you are feeling antsy about missing the Bernanke Train to the heavens there is a bemusing story about Isaac Newton and the South Sea Bubble on page 10.

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:

Grantham Q4                                                                 

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]

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012