Monday, December 5, 2011

GMO's Jeremy Grantham's Q3 Letter: The Shortest Quarterly Letter Ever

I've been wondering when the latest Grantham letter would be out, and it has just hit the interwebs, titled: The Shortest Quarterly Letter Ever.  For Grantham it is indeed a fraction of his normal self - a mere 4 pages.

Some excerpts pulled out courtesy of ZeroHedge (without the terrorizing headline) ;)
  • Avoid lower quality U.S. stocks but otherwise have a near normal weight in global equities.
  • Tilt, where possible, to safety.
  • Try to avoid duration risk in bonds. For the long term they are desperately unattractive. Don’t be too proud (or short-term greedy) to have substantial cash reserves. Admittedly, this is the point where we at GMO try to be clever and do a little better than the minus 1% real from real cash – and, so far, with decent success.
  • I like (personally) resources in the ground on a 10-year horizon, but I am nibbling in very slowly because, as per my Quarterly Letter on resources in April 2011, I fear a major short-term decline in commodities based on a combination of less bad weather – which has been bad, but indeed less bad – and economic weakness, especially in China. Prices have declined, often quite substantially, since that letter. However, I believe chances for further price declines in resources are still better than 50/50 as China and the world slow down for a while, and the weather becomes a bit more stable.

Full read here - as always hit fullscreen for the easy read

Grantham Qtrly Letter

Some older letters:

[Jul 25, 2011: GMO's Jeremy Grantham's Q2 Letter: Separating the Dangerous from the Merely Serious]
[Jan 26, 2011: GMO's Jeremy Grantham Q4 Letter: Pavlov's Bulls]
[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]

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