QOTD: Grantham Gives Up

Posted by

It suggests to me that I have in general been over-intellectualizing the working of the market for a few decades. I have had too strong a belief that investors would at least be influenced by past data in a sensible way. The market, however, appears not to care at all about the past or to learn much from it. This model for sure seems to say that for 92 years, at least, the market has with remarkable consistency been a coincident indicator of superficially appealing variables that in a strict economic sense have been inappropriate, and that have caused spectacular and unnecessary market volatility. The model is apparently a reflection of human nature and, of all factors influencing the market, human nature, as economically inefficient and unsophisticated it may be, seems the least likely to change.

- Jeremy Grantham (GMO)

Grantham: Why Are Stock Market Prices So High? (Barron's)

I never miss Jeremy Grantham and Ben Inker of GMO. Grantham’s recent writings have been startlingly honest in their tacit admissions that mathematical formulas can only take us so far in our understanding of the markets. The human element in the investment game is unchanged throughout history, but it remains fundamentally elusive to those who would seek to quantify it or predict its next bout of caprice.

The meanest reversion is the one that refuses to revert in a timely enough fashion.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  2. movies123.video commented on Sep 16

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  4. bitcoin era reviews 2020 commented on Sep 22

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  5. Blazing Speed Trader review commented on Sep 23

    … [Trackback]

    […] There you will find 48718 additional Info on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  6. blazing trader commented on Sep 30

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  7. orangeville real estate agents commented on Oct 16

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  8. british dragon anadrol commented on Oct 22

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  9. 먹튀검증놀이터 commented on Nov 07

    … [Trackback]

    […] Here you can find 32336 additional Info to that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  10. scotiabank login commented on Nov 30

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

  11. diamond paintings commented on Dec 29

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2017/08/06/qotd-grantham-gives-up/ […]

HowIInvestMyMoney