What If Jeremy Grantham is Right?

by Alexander Green, Chief Investment Strategist

Jeremy Grantham, president of investment management firm GMO LLC, has been getting a lot of press lately.

At the market’s top, he warned of an impending bear market. At the bottom in March, he forecast a historic rally. Today, he says the market is 25% overvalued.

Should you be worried? Perhaps not.

Let’s start with Grantham’s track record. He’s made a couple of good calls lately. But does he get it right all the time? Of course not. No one does.

But even if he’s right, it wouldn’t necessarily be negative. It all depends on your time horizon. Here’s why…

How Long-Term Investors Can Benefit From A Bear Market

If you own stocks on margin, call options, or LEAP options, a market downturn could be devastating. A 50%

Momentum Investing: The Secret to a Red-Hot Stock Portfolio

by Alexander Green, Advisory Panelist

The investment landscape isn’t pretty right now.

The federal deficit is ballooning. Credit is tight. Home prices are still falling. The dollar is weak. Fuel prices have jumped. The economy is in the tank. And last year the stock market experienced its worst year since 1931.

Who in his right mind would buy stocks now?

I would. In fact, it’s only because so many investors keep repeating the mantra in the paragraph above - as the national media does endlessly - that they don’t.

And when they realize how many momentum investing opportunities they’ve missed, they’re really going to regret it.

So do yourself a favor and turn off all the talking heads on TV. They don’t know any more than you what the economy will do in the second half… or where interest rates will go… or

The markets did not get off to a good start this week, with the Dow down -0.52%.  The NASDAQ was down -0.93% to close at 1606.71, while the S&P was down -0.83% to close at 835.46.  Oil and gold both were down today, as they settled at $51.05 and $872.80 respectively.  The 10-year yield was up today closing at 2.939%. 

The tech heavy NASDAQ was led down today as it was reported that the potential $7 billion acquisition of Sun Microsystems [JAVA: 6.56, 0.00 (0.00%)] by IBM [IBM: 101.56, 0.00 (0.00%)] is falling through.  Both stocks fell on the news, with Sun down over -22%.  Some say that the deal is definitely over with IBM withdrawing its offer and Sun ending its agreement to talk exclusively with IBM.  Sun reportedly rejected IBM’s offer of $9.50 a share, which would have been more than double their stock