GMO Quarterly Letter
Link to: GMO's Q3 2016 Quarterly Letter
Ben Inker looks at today’s low yields and high valuations across almost all asset classes, which seem to guarantee returns lower than those measured historically. Will valuations revert to normal levels or will they remain elevated? Along with a discussion as to whether the US market is in classic bubble territory, Jeremy Grantham offers a series of “thought experiments” around the question as to whether asset prices will return to normal levels and, if they do, will the move be fast or slow?