Well-known hedge fund manager Jeremy Grantham has published an article in Barron’s considering the state of the US equity market. His piece is well-thought out and communicated and comes to a clear conclusion—the bull market has more room to run. Basing his argument on a mix of historical market data, economic info, and psychological analysis, Grantham reluctantly comes to the conclusion that the bull market may be entering its final “melt up” phase. He says that while this is one of the priciest markets in history, “strangely, I find the less statistical data more compelling in this bubble context than the simple fact of overpricing”.
FINSUM: We know Grantham personally and respect his views. He was a pioneer in the statistical study of markets, but here says he leans away from that view, which is very noteworthy.