Author Topic: Jeremy Grantham's latest letter  (Read 1457 times)

QLEAP

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Jeremy Grantham's latest letter
« on: July 27, 2009, 09:33:04 AM »
Boring fair price @ http://www.gmo.com

Fair value, presidential cycles, contingency plans and more ..


scorpioncapital

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Re: Jeremy Grantham's latest letter
« Reply #1 on: July 27, 2009, 10:52:56 AM »
Boring fair price @ http://www.gmo.com

Fair value, presidential cycles, contingency plans and more ..

I can't see how these two plans are not mutually exclusive.

"I also suggested Plan B: if you missed the earlier
lows, you must grit your teeth and phase slowly into a
cheap market. You canít gamble that it will oblige you by
another low, and historical analogies with earlier, much
lower market lows are fraught with genuine differences."

and

"Given our view that we are in for seven lean years in which
the market will be looking for an excuse to be cheap, we
recommend taking some risk units off the table, including
becoming underweight in equities Ė between 1000 and
1100 on the S&P, if it gets there this year. Around 880
you should continue to move slowly to fair value, twiddle
your thumbs, and wait to see what happens."




JEast

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Re: Jeremy Grantham's latest letter
« Reply #2 on: August 05, 2009, 11:34:05 AM »
As always, an interesting read.

However, the most interesting part, in my view, was in the footnotes and his reference to the items below. As I am an admirer of all things written by Garrett Hardin, his reference to Living within Limits was of some insight. It is also a Munger recommendation.

Living within Limits: Ecology, Economics, and Population Taboos
http://www.amazon.com/Living-within-Limits-Economics-Population/dp/0195093852/ref=cm_cr-mr-title

The Most IMPORTANT Video You'll Ever See
http://www.youtube.com/watch?v=F-QA2rkpBSY


Cheers
JEast