Jeremy Grantham (GMO) Interview: Macro Perspective of 2011
Enviado: 5/12/2010 19:27Legendary investor Jeremy Grantham told CNBC today investors should be mostly in cash and wait for stock prices to fall.
Mr. Grantham says investors have a third choice between buying stocks versus buying bonds and that is through cash holdings. He believes cash offers investors security and 'optionality' because if the stock market crashes you have cash as an available resource.
Mr. Grantham also added that he believes the S&P 500's (SPX) fair value is around 900 versus its current value of 1,210 today. Thus, Mr. Grantham believes stocks are roughly 25% overvalued.
Mr. Grantham is a strong critic of the Federal Reserve and thinks the central bank should stick to controlling the money flow. He is strongly against its recent stimulus efforts, including its recent announcement of $600 billion in quantitative easing.
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*Check out the complete transcript of Maria Bartiromo’s interview
http://www.cnbc.com/id/40131748/
Mr. Grantham says investors have a third choice between buying stocks versus buying bonds and that is through cash holdings. He believes cash offers investors security and 'optionality' because if the stock market crashes you have cash as an available resource.
Mr. Grantham also added that he believes the S&P 500's (SPX) fair value is around 900 versus its current value of 1,210 today. Thus, Mr. Grantham believes stocks are roughly 25% overvalued.
Mr. Grantham is a strong critic of the Federal Reserve and thinks the central bank should stick to controlling the money flow. He is strongly against its recent stimulus efforts, including its recent announcement of $600 billion in quantitative easing.
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*Check out the complete transcript of Maria Bartiromo’s interview
http://www.cnbc.com/id/40131748/