Sunday, 22nd November 2009

 

25 August 2009 - Press Briefing

Grantham predicts ‘seven lean years’ for stock market

Jeremy Grantham, who correctly called the market's bottom in early March, has predicted a sluggish market lasting "seven lean years" to atone for what his asset-management firm GMO believes was a long era of overpriced stocks, according to a report in The Wall Street Journal.

In his latest newsletter, the famous money manager and his colleagues claim the Standard & Poor's 500-share index has soared past what they deem fair value of nearly 880, based on earnings projections and historical price-to-earnings ratios. The S&P 500 closed on Friday at 1026.13, up about 52% from its 12½-year trough on March 9 and its highest close since October 6.

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Brummel

Relocation, relocation, relocation

Banks have never been shy of firing staff at the merest whiff of a downturn. First the fat, then the muscle and finally the bone. In the past, cuts have been so deep that firms have found it hard to benefit when the markets rebounded, paying over the odds to restaff at speed. Such wild oscillations in staffing numbers are known as “doing a Merrill”.

Rich Monitor

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