RE:Jeremy Grantham Article: Food For Thought Additional information on Grantham (got the following from his Wikipedia entry, so keep this in mind when reading the exerpt): "Grantham built much of his investing reputation over the course of his career by identifying speculative asset bubbles as they were unfolding.
Grantham avoided investing in Japanese equities and real estate in the late 1980s during the peak of the Japanese asset price bubble, and avoided technology stocks during the Internet bubble of the 1990s.
A decade later, he limited his exposure to the housing bubble.
Writing in Kiplinger in 2010, Elizabeth Leary noted that many of Grantham's predictions can be confirmed by analysis of his past newsletters.
In a 2021 interview, Grantham distinguishes between identifying overpriced asset bubbles (which he believes is not particularly difficult), and predicting when such bubbles will collapse (which he admits is impossible, stating only that asset bubbles will eventually end at an uncertain future date). Grantham also acknowledges his strategy can underperform market averages for years, testing the patience of his clients, but he asserts that his strategy has always paid off long-term by avoiding overvalued assets."