From “Reinvesting When Terrified” to Investing Purgatory

Investing expert Jeremy Grantham’s market calls have a funny way of being vindicated.

In the 1990’s, he was early to sound the alarm about frothy tech and internet stocks.

Too early.

As a result, Grantham’s money management firm, GMO, hemorrhaged billions in investor withdrawals.

What happened next?

All the people who bailed on GMO subsequently lost of a good chunk of that money when the Internet bubble popped in 2000 (or, so you’d certainly guess).

Investing Purgatory

A decade later, Grantham’s March, 2009 article, “Reinvesting When Terrified,” called the bottom practically to the day. 

Most recently, GMO’s spectacularly bearish Q3 2016 Report, “Hellish Choices:  What’s an Investor to Do?,” envisioned a Purgatory-like investing landscape with mediocre (or worse) returns as far as the eye could see.

Of course, that’s not what happened the last three months, and GMO investors who feel they’ve missed the party have been yanking their money by the billions.

They may want to reconsider.

If history’s any guide, now may be exactly the time to put money into GMO.

See also, “Jeremy Grantham for Federal Reserve Chair”; “Jeremy Grantham, Black Holes & Brexit“; “Grantham:  “Let’s Get On With Whatever’s Next'”; and “Jeremy Grantham on How Much Gold to Own.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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