When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Friday, August 8, 2014

Jeremy Grantham, M&A Boom, Bubble, It Will All End Badly

“My recent forecast of a fully-fledged bubble…remains in effect”--Jeremy Grantham

Jeremy Grantham: M&A Boom Poised For a ‘Veritable Explosion’ - MoneyBeat - WSJ: "... He expects that institutions will find few attractive opportunities besides deal-making, which will act as additional fuel for the stock market to keep rallying in the months ahead. There is “little in the way of attractive investments or yields,” Mr. Grantham said. “So, the returns promised from deal making are likely to appear, relatively at least, exceptional. “I think it is likely (better than 50/50) that all previous deal records will be broken in the next year or two,” he added. “This of course will help push the market up to true bubble levels, where it will once again become very dangerous indeed.” Mr. Grantham reiterated his call that the S&P 500 will climb to at least 2250, about 14% above current levels. But then, it will all end badly. In May he predicted that the rally would continue through the 2016 presidential election before a crash ensues." (read more at the link above)

The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects