Jeremy Grantham of GMO “has a track record that’s difficult to ignore”, says Steven Russolillo in The Wall Street Journal. He foresaw the internet bubble and the housing bubble, and “almost perfectly timed” the market bottom in 2009. So what does he think will happen next?
The American stockmarket, already far from good value, will keep going up and end in ”a fully fledged bubble”, he says. That implies a level of “at least” 2,250 on the S&P 500, around 15% above current levels. The US Federal Reserve under Janet Yellen has made it very clear that [...]