GRANTHAM: ‘The Next Bust Will Be Unlike Any Other’
Rob Wile
BusinessInsider.com
Mar. 24, 2014
Veteran fund manager Jeremy Grantham of GMO recently spoke to Fortune Magazine about the state of markets.
In his view, central banks have created an enormous bubble in stocks, by holding rates too low.
Grantham has long been skeptical of Fed actions. But the language he uses here is pretty dire:
We do think the market is going to go higher because the Fed hasn’t ended its game, and it won’t stop playing until we are in old-fashioned bubble territory and it bursts, which usually happens at two standard deviations from the market’s mean. That would take us to 2,350 on the S&P 500, or roughly 25% from where we are now…
The Rest…HERE
