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Discussion Starter #1
in a world where there are about a thousand videos by a thousand talking head financial experts this one stands out for it's clarity and i thought was well worth the investment of time

jeremy grantham is a very well respected asset manager who is a student of bubbles

he is very clear that we are smack dab in the middle of another one ...

it's worth a look, he has some very good ideas on where to look and what to do ...

http://www.cnbc.com/id/15840232/?video=1640401359&play=1
 

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Good stuff

I like his explanation that the Fed wants you to feel richer so you spend more

The part about low interest hurting the economy by taking money from the spenders (retirees) and giving it to banks is an interesting way to look at it.

I'm already overweight on cash and KOs/JNJs maybe I should get a slice of emerging markets
 

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I have been saying this everywhere that we are going to get smashed, burned and destroyed if we hold anything. I could be wrong but I am afraid it is a lesson in everyone being wrong long, short, bulls or bears. Sorry guys but we have a moving target here and everyone and anyone can be screwed. This is why gold goes up and up as a reflection of the truth that is out there.

Bulls rule right now and bellguy take note, but the bears will rule later and there will be very few of them that gets it right. In a screwed environment like this only cash rules unless you can be right on the rigged truth.
 

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I just dropped 70k into the market from my cash hoard and am already regretting it. Nothing wrong with holding cash I'm thinking.
 

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My comp speakers are not working ....

However yesterday I read this article, and then searched and read a lot of other things written by Grantham.

He is the lead Investment manager at a firm called GMO that handles large money.

He hates what the FED has been, and is doing, and thinks its unfair to savers/ retirees...and encourages risk......which is why he says that risky assets have done better than less-risky assets recently.

However he thinks this tide will turn....and that value will win out in the near future.

He says "cash" can and should be considered an asset...because when the market drops , as he thinks it will, ( his "fair market" for the S&P is about 900),
you will need cash to buy these value companies.

I took a look at some of the mutual funds you can buy in the US run by GMO
and their record is not that impressive.

They have lagged the S&P 500 in the last 5 years...but did better over 10 years. When looking at that 10 yr record what I immediately saw was that their outperforamce was almost all due to the fact that they beat the S&P500
handily in 2000, and by a bit less in 2001.....
This most assuradly was because they held little "high tech" stocks during those years when these tanked, as they a large co value firm.

Anyway, i looked up their holdings on msnmoney.com.....same old stuff.
XOM JNJ CVX SFT PG PFE WMT KO PEP MRK......etc etc.....

Some symbols for these funds......GMCFX, GQETX, GQLOX
GCEFX...international stocks..(GLX NESN AZN )

look up the holdings for yourself....buy what you like. I already own several of the things they do.

nobody has all the answers.
 

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Discussion Starter #8
absolutely agree that no one has it perfect ..

what impressed me about grantham aside from his long standing real world asset management background

was the clarity and directness of his interview .. it was well done

suffice to say that among other things he is not a fan of the federal reserve
 
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