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GMO has pounding this drum for years[1][2]. Eventually, they'll be right, but not because they were able to call it correctly. In fact given the run-up since th
by eloff 6y ago
GMO has pounding this drum for years[1][2]. Eventually, they'll be right, but not because they were able to call it correctly. In fact given the run-up since they started calling for the bubble to burst you'd likely still be ahead if the bubble burst tomorrow and stocks halved in value.
Now a lot of what they say has some truth to it, and they might actually be right. But they might also continue being wrong for years to come. Timing the market is a fools errand. Good advice is invest mostly by value or underestimated growth stocks, invest continuously, and only with money you don't need for at least 10 years. And finally, when the inevitable plunge does come, don't sell no matter how bad it gets. You only lose or make money when you sell, before that it's just points on paper.
[1] 2018 https://www.institutionalinvestor.com/article/b1743d0x0ms3yx/why-is-no-one-listening-to-jeremy-grantham https://www.institutionalinvestor.com/article/b1743d0x0ms3yx...
[2] 2017 https://www.gmo.com/americas/research-library/is-the-u.s.-stock-market-bubble-bursting/ https://www.gmo.com/americas/research-library/is-the-u.s.-st...