MK at confernece

This Time Seems Very, Very Different

By Jeremy Grantham

GMO Quarterly Letter

1Q 2017

Part 2 of Not with a Bang but a Whimper - A Thought Experiment

Also in this edition of the GMO Quarterly Letter Up At Night By Ben Inker

Executive Summary

There are two important things to carry in your mind: First, the market now and in the past acts as if it believes the current higher levels of profitability are permanent; and second, a regular bear market of 15% to 20% can always occur for any one of many reasons. What we are interested in here is quite different: a more or less permanent move back to, or at least close to, the pre-1997 trends of profitability, interest rates, and pricing. And for that it seems likely that we will have a longer wait than any value manager would like.

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Disclaimer: The views expressed are the views of Jeremy Grantham through the period ending May 2017, and are subject to change at any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
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