Jeremy Grantham is a British investor and co-founder and chief investment strategist of Grantham Mayo van Otterloo (GMO), a Boston-based asset management firm. GMO is one of the largest managers of such funds in the world, having more than US $97 billion in assets under management as of December 2011. Grantham is widely regarded as a highly knowledgeable investor in various stock, bond, and commodity markets, and is particularly noted for his prediction of various bubbles. In this engaging and thought provoking interview with Charlie Rose, Mr. Grantham shares his thoughts on the US and world economies and what potentially lies ahead for years to come. It is a fascinating interview and well worth listening to in its entirety. While long (roughly an hour), Mr. Grantham touches on a number of thought provoking subjects far beyond what many are talking about.
Jeremy Grantham
Welcome to the extended version of the BAM Market Note. We are not bloggers by nature but have had clients and friends inquire about our thoughts on the market in between our newsletters. The number and content of posts will likely be determined by the conditions of the markets and the interests of our readers. We would greatly appreciate your feedback and comments.
Wednesday, July 31, 2013
Friday, July 19, 2013
Friday, June 21, 2013
Thursday, May 30, 2013
CHANGES IN MARKET CHARACTER
Over the last week or so, the markets have endured a mild correction. The jury is still out on whether or not it is over but it is indisputable that the nature of this recent weakness is very different from bouts of selling earlier this year. Generally speaking, in a market correction investors flee to the safety of treasury bills driving the rates on those instruments lower. However, over the last 4 weeks the 30 year treasury rate has actually increased 16% and the 10 year rate has increased over 28%. As a result, interest sensitive sectors have been hit much harder in recent weeks than the economically sensitive groups. Talk of the Federal Reserve tapering off their quantitative easing and entering into a more tightening monetary policy has led, in part, to the recent sell-off. Is the nature of the recent decline and the affected groups a sign of things to come? After all, quantitative easing cannot last forever... It is certainly worth watching and considering. As we have mentioned in our newsletter a number of times over the last year, many investors will be surprised that their "safe" allocation to bond funds is really not that safe in a rising rate environment.
Monday, May 27, 2013
Monday, April 22, 2013
13 WORST PREDICTIONS MADE ON EARTH DAY, 1970
13 Worst Predictions Made on Earth Day, 1970
By Jon Gabriel on April 22, 2013
The 1970s were a lousy decade. Embarrassing movies, dreadful music and downright terrifying clothes reflected the national mood following an unpopular war, endless political scandals and a faltering economy.
Popular culture was consumed with decline, especially Hollywood. The Omega Man, Soylent Green, Damnation Alley and countless other dystopian films showed a planet wrecked by war, pollution and neglect. In large part, the entertainment industry was reflecting the culture at large.
In 1970, the first Earth Day was celebrated — okay, “celebrated” doesn’t capture the funereal tone of the event. The events (organized in part by then hippie and now convicted murderer Ira Einhorn) predicted death, destruction and disease unless we did exactly as progressives commanded.
Behold the coming apocalypse as predicted on and around Earth Day, 1970:
"Civilization will end within 15 or 30 years unless immediate action is taken against problems facing mankind." — Harvard biologist George Wald
"We are in an environmental crisis which threatens the survival of this nation, and of the world as a suitable place of human habitation." — Washington University biologist Barry Commoner
"Man must stop pollution and conserve his resources, not merely to enhance existence but to save the race from intolerable deterioration and possible extinction." — New York Times editorial
"Population will inevitably and completely outstrip whatever small increases in food supplies we make. The death rate will increase until at least 100-200 million people per year will be starving to death during the next ten years." — Stanford University biologist Paul Ehrlich
"Most of the people who are going to die in the greatest cataclysm in the history of man have already been born… [By 1975] some experts feel that food shortages will have escalated the present level of world hunger and starvation into famines of unbelievable proportions. Other experts, more optimistic, think the ultimate food-population collision will not occur until the decade of the 1980s." — Paul Ehrlich
"It is already too late to avoid mass starvation," — Denis Hayes, Chief organizer for Earth Day
"Demographers agree almost unanimously on the following grim timetable: by 1975 widespread famines will begin in India; these will spread by 1990 to include all of India, Pakistan, China and the Near East, Africa. By the year 2000, or conceivably sooner, South and Central America will exist under famine conditions…. By the year 2000, thirty years from now, the entire world, with the exception of Western Europe, North America, and Australia, will be in famine." — North Texas State University professor Peter Gunter
"In a decade, urban dwellers will have to wear gas masks to survive air pollution… by 1985 air pollution will have reduced the amount of sunlight reaching earth by one half." — Life magazine
"At the present rate of nitrogen buildup, it's only a matter of time before light will be filtered out of the atmosphere and none of our land will be usable." — Ecologist Kenneth Watt
"Air pollution...is certainly going to take hundreds of thousands of lives in the next few years alone." — Paul Ehrlich
"By the year 2000, if present trends continue, we will be using up crude oil at such a rate… that there won't be any more crude oil. You'll drive up to the pump and say, ‘Fill 'er up, buddy,' and he'll say, ‘I am very sorry, there isn't any.'" — Ecologist Kenneth Watt
"[One] theory assumes that the earth's cloud cover will continue to thicken as more dust, fumes, and water vapor are belched into the atmosphere by industrial smokestacks and jet planes. Screened from the sun's heat, the planet will cool, the water vapor will fall and freeze, and a new Ice Age will be born." — Newsweek magazine
"The world has been chilling sharply for about twenty years. If present trends continue, the world will be about four degrees colder for the global mean temperature in 1990, but eleven degrees colder in the year 2000. This is about twice what it would take to put us into an ice age." — Kenneth Watt
Quotes from "Earth Day, Then and Now," by Ronald Bailey, Reason.com. May 1, 2000.
By Jon Gabriel on April 22, 2013
The 1970s were a lousy decade. Embarrassing movies, dreadful music and downright terrifying clothes reflected the national mood following an unpopular war, endless political scandals and a faltering economy.
Popular culture was consumed with decline, especially Hollywood. The Omega Man, Soylent Green, Damnation Alley and countless other dystopian films showed a planet wrecked by war, pollution and neglect. In large part, the entertainment industry was reflecting the culture at large.
In 1970, the first Earth Day was celebrated — okay, “celebrated” doesn’t capture the funereal tone of the event. The events (organized in part by then hippie and now convicted murderer Ira Einhorn) predicted death, destruction and disease unless we did exactly as progressives commanded.
Behold the coming apocalypse as predicted on and around Earth Day, 1970:
"Civilization will end within 15 or 30 years unless immediate action is taken against problems facing mankind." — Harvard biologist George Wald
"We are in an environmental crisis which threatens the survival of this nation, and of the world as a suitable place of human habitation." — Washington University biologist Barry Commoner
"Man must stop pollution and conserve his resources, not merely to enhance existence but to save the race from intolerable deterioration and possible extinction." — New York Times editorial
"Population will inevitably and completely outstrip whatever small increases in food supplies we make. The death rate will increase until at least 100-200 million people per year will be starving to death during the next ten years." — Stanford University biologist Paul Ehrlich
"Most of the people who are going to die in the greatest cataclysm in the history of man have already been born… [By 1975] some experts feel that food shortages will have escalated the present level of world hunger and starvation into famines of unbelievable proportions. Other experts, more optimistic, think the ultimate food-population collision will not occur until the decade of the 1980s." — Paul Ehrlich
"It is already too late to avoid mass starvation," — Denis Hayes, Chief organizer for Earth Day
"Demographers agree almost unanimously on the following grim timetable: by 1975 widespread famines will begin in India; these will spread by 1990 to include all of India, Pakistan, China and the Near East, Africa. By the year 2000, or conceivably sooner, South and Central America will exist under famine conditions…. By the year 2000, thirty years from now, the entire world, with the exception of Western Europe, North America, and Australia, will be in famine." — North Texas State University professor Peter Gunter
"In a decade, urban dwellers will have to wear gas masks to survive air pollution… by 1985 air pollution will have reduced the amount of sunlight reaching earth by one half." — Life magazine
"At the present rate of nitrogen buildup, it's only a matter of time before light will be filtered out of the atmosphere and none of our land will be usable." — Ecologist Kenneth Watt
"Air pollution...is certainly going to take hundreds of thousands of lives in the next few years alone." — Paul Ehrlich
"By the year 2000, if present trends continue, we will be using up crude oil at such a rate… that there won't be any more crude oil. You'll drive up to the pump and say, ‘Fill 'er up, buddy,' and he'll say, ‘I am very sorry, there isn't any.'" — Ecologist Kenneth Watt
"[One] theory assumes that the earth's cloud cover will continue to thicken as more dust, fumes, and water vapor are belched into the atmosphere by industrial smokestacks and jet planes. Screened from the sun's heat, the planet will cool, the water vapor will fall and freeze, and a new Ice Age will be born." — Newsweek magazine
"The world has been chilling sharply for about twenty years. If present trends continue, the world will be about four degrees colder for the global mean temperature in 1990, but eleven degrees colder in the year 2000. This is about twice what it would take to put us into an ice age." — Kenneth Watt
Quotes from "Earth Day, Then and Now," by Ronald Bailey, Reason.com. May 1, 2000.
Friday, April 19, 2013
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