In a recent interview with CNBC, investing legend and GMO co-founder Jeremy Grantham “painted a very dire picture of the investment landscape in the U.S.” according to an article in MarketWatch. Grantham, who has accurately predicted three financial bubbles, said: “My confidence is rising quite rapidly that this is, in fact, becoming the fourth, real McCoy, bubble of my investment career. The great bubbles can go on a long time and inflict a lot of… Read More
U.S. stocks are expensive no matter how you slice is, says Oxford Economics, and could “come under pressure as geopolitical tensions escalate.” This according to a recent article in Bloomberg. “American shares are as much as 16% overvalued at present levels, and a short position on the S&P 500 Index looks increasingly favorable,” said strategist Daniel Grosvenor in recent report, adding that low bond yields are not sufficient to bolster equity prices. He wrote, “The… Read More
A recent Fortune article by Ritholtz Wealth Management’s Ben Carlson argues that the past decade’s strong stock performance has been “almost exclusively driven by fundamentals, much to the chagrin of the perma-bears who blame everything that’s happened on the Fed.” Carlson describes a formula created by the late-Jack Bogle that “allows us to check on the recent and historical fundamentals of what has been driving the rise of U.S. stocks.” He explains that Bogle broke… Read More
U.S. equity shares are trading at their “highest premiums to international shares in years, reflecting bets among investors that the domestic economy will keep powering past its peers around the world,” according to an article in The Wall Street Journal. While investors attribute the performance to faith in the U.S. economy, the article says, “the rally has come at a cost: U.S. stocks have become increasingly expensive compared with major indexes elsewhere, something that some… Read More
Economic worries overseas are leading investors to return to U.S. stocks, according to a recent article in The Wall Street Journal. The article reports that recently, global stocks have underperformed U.S. equities, “as concerns spread about the health of emerging markets, geopolitical tensions in Asia and the pace of European growth.” Some analysts say that investors are coming to grips with signals that the “much-anticipated world-wide economic liftoff” has yet to arrive. Jonathan Golub, chief equity… Read More