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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