Jeremy Grantham is a co-founder of Grantham Mayo Van Otterloo, a $70 billion global asset manager. He serves the firm’s chief strategist and. Jeremy Grantham, the longtime investor famous for calling the last two major bubbles in the market, is urging capitalists and “mainstream. GMO is a global investment management firm committed to providing sophisticated clients with superior asset management Grantham, Mayo, & van Otterloo.

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The firm allocates assets based on internal predictions of market direction. Seeing these things requires more people with a historical perspective who are more thoughtful and more right-brained — but we end up with an army of left-brained immediate doers.

His firm seeks to understand historical changes in markets and predict results for seven years into the future. Retrieved 17 April He believes that this bubble is coming to an end.

Jeremy Grantham

A few quarters ago I likened our financial system to an elaborate suspension bridge, hopefully built with some good, old-fashioned Victorian over-engineering.

Grantham avoided investing in Japanese equities and real estate in the late eighties, as well as technology stocks during the Internet bubble in the late nineties.

Every single grqntham of them has broken all the way back to the trend that existed prior to the bubble forming, which is a very tough standard.

Grantham’s investment philosophy can be summarised by his commonly used phrase “reversion to the mean.

Grantham, together with his wife Hannelore, established the Grantham Foundation For the Protection of the Environment in It was built to do just one under favorable conditions. It’s simply more reliable, higher-quality data.


Now with hurricanes blowing, the Corps of Engineers, as it were, are working around the clock to prop up a suspiciously jerry-built edifice. Retrieved 13 April And the three or four-dozen-odd characters screaming about it are always going to be ignored. The London Gazette Supplement.

It seemed so inevitable and so merciless, and yet the bosses of Merrill Lynch and Citi and even U. This list is incomplete ; you can help by expanding it. gfantham

Grantham has repeatedly stated his opinion that the rising cost of energy — the grantahm fundamental commodity — between and has falsely inflated economic growth and GDP figures worldwide and that we have been in a “carbon bubble” for approximately the last years in which energy was very cheap. They are somewhat impatient, and focused on the present. So it’s simply illogical to give up the really high probabilities involved at the asset class level.

I have a gratnham that people who find themselves running major-league companies are real organization-management types who focus on what they are doing this quarter or this annual budget. He has stated his opposition geantham the Grantyam Pipeline on the basis of the ruinous environmental consequences that its construction will bring to Alberta and to the entire planet due to the contribution that burning the extracted oil would make to climate change.

Webarchive template wayback links CS1 errors: For the record, I wrote an article for Fortune published in September that referred to three “near certainties”: To avoid the development of crises, you need a plentiful supply of foresight, imagination, and competence.


You can perhaps only have that degree of confidence if you have been to the history books as much as we have and looked at every bubble and every bust. Grantham has built much of his investing reputation over his long career by correctly identifying granthwm market “bubbles” as they were happening and steering clients’ assets clear of impending crashes.

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Well, it wasn’t over-engineered! All the gmi errors that frighten us all at the individual stock level are washed away at these great aggregations. We are up to 34 completed bubbles. Retrieved 30 October The bitterest disappointment of this crisis has been how completely the build-up of the bubbles in asset prices and risk-taking was rationalized and ignored by the authorities, especially the formerly esteemed Chairman of the Fed.

Jeremy Grantham – Wikipedia

I ask myself, ‘Why is it that several dozen people saw this crisis coming for years? When there is deviation from historical means averagesthe firm may take an investment position based on a return to the mean. From Wikipedia, the free encyclopedia.