Salient to Investors:
Jeremy Grantham at GMO said:
- The US market, especially riskier shares, could rise another 20 percent to 30 percent in the next year or two, along with the rest of the world, including emerging-markets, followed by a serious market bust.
- The S&P 500 is 40 percent overvalued. The expected real rate of return for the next 7 years is a negative 1.3 percent per annum.
- Prudent investors almost invariably must forego plenty of fun at the top end of markets.
Ben Inker at GMO said there is no evidence whatsoever of a golden age of corporate investment and economic growth that would solve the federal deficit and unemployment and other problems.
Read the full article at http://www.businessweek.com/articles/2013-11-20/this-market-is-going-higher-warns-jeremy-grantham
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