A week ago noted investor Ray Dalio projected annual equity returns of a less than robust 4% over the next decade.
Now we hear from another one of my favorite investment gurus, Jeremy Grantham. While Grantham believes the current equity ‘party’ has one more leg up over the next year or maybe two, we will then experience the third serious market correction since 1999.
When Grantham talks, I listen. He had plenty to say in his recent quarterly letter.
My personal view is that the Greenspan-Bernanke regime of excessive stimulus, now administered by Yellen, will proceed as usual, and that the path of least resistance, for the market will be up.
I believe that it would take a severe economic shock to outweigh the effect of the Fed’s relentless pushing of the market. Look at the market’s continued advance despite almost universal disappointment in economic growth.Â
In regard to global economic growth. . .
