05/18/2017 - Jeremy Grantham: Could High Stock Prices Be Here To Stay
“In conclusion, there are two important things to carry in your mind: First, the market now and in the
past acts as if it believes the current higher levels of profitability are permanent; and second, a regular
bear market of 15% to 20% can always occur for any one of many reasons. What I am interested in
here is quite different: a more or less permanent move back to, or at least close to, the pre-1997 trends
of profitability, interest rates, and pricing. And for that it seems likely that we will have a longer wait
than any value manager would like (including me).”
