Risk and Return

Yesterday was one fo the best days ever for the stock markets:

What does it mean? I think it ultimately depends on factors unrelated to the move itself. Econompic provides us with some context:

Obviously large one day moves in and of themselves tell us little about what is to come. So, let us at least look [...]

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The Financial Times writes of his feeling of vindication.
Jeremy never falls out of favor here, but then, we are a client.
Inevitably when he is early, as he generally is, people take it as a sign he is wrong, and note the returns he gives up when he frequently goes against the tide. However, the true [...]

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Jeremy Grantham echoes a few themes here at Risk and Return in this interview with Barron’s:
Secondly, this occurred at a time of what I believe is the first global bubble in pretty well all asset prices, so there is a much greater degree of broad-based vulnerability.

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In line with the comments in the previous post about the reasons people invest the way they do, and repeatedly fall for the excesses of short term speculation, Jeremy Grantham has long spoken of the career risk of unconventional success and failure.
The great paradox of our business is that reducing or avoiding real risk [...]

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