Jeremy Grantham has done better than most when it comes to the big calls. He warned that the housing bubble of the mid-2000s would burst, and turned positive on stocks in March 2009. The S&P 500 has gained 180% since then, and the upswing has also been unusually long. So is the return of the bear near?
This rally "will end badly", reckons Grantham, but not for some time: the odds are that we are set for "a substantial and quite lengthy last hurrah". The main reason to think so is the US Federal Reserve's serial bubble blowing.
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