Jeremy Grantham was on Charlie Rose last week in a rare interview. Not surprisingly, Grantham is not terribly optimistic. Here’s a brief summary though his full thoughts are always worth a listen:
- The global economy is in a long-term slow-down.
- US annual economic growth will never go back to what it once was (3%+).
- Population poses a huge hurdle in the US.
- China is a good growth economy in the short-term, but is a major resource consumer.
- The biggest problem is natural resource scarcity where prices are rising faster than global growth.
- He doesn’t think very highly of Alan Greenspan….
- Bernanke is even more academic and arguably worse then Greenspan was.
- Foreign equities should perform reasonably well compared to the USA.
- GMO is underweight global stocks, significantly underweight US stocks.