The NEW NORMAL from the horse’s mouth.
Jeremy Grantham is a Co-founder and Chief Investment Strategist of Grantham Mayo Van Otterloo also known as (GMO). He has 44 years experience and is also the founder of one of the first index funds in the 1970’s. With about US $100 billion in funds under management, he is also the founder of one of the world’s biggest if not the biggest managers.
He is a contrarian and just last week was quoted as saying: “I bought more long-term Treasuries in the last month than I’ve bought in four years. I am a fan of Treasuries now. I wasn’t a fan of Treasuries in July.”
He believes in and indeed coined the term, The New Normal – lower rates of growth for the US permanently.
He is also quoted as saying; “When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.”
I think you will enjoy this interview with Charlie Rose. You will need an hour so grab a cup of tea, a coffee and cookies and or a glass or wine and enjoy.
Watch here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Mike Williams
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Grantham addreses those who blindly believe human ingenuity will solve these issues as “arrogance” and that such a mindset leads to the downfall of civilizations “that seems hardwired in mankind”. human ingenuity maybe our saviour but to blindly beliieve so and to continue practises that exacerbate the issues of climate change and limited resources would seem reckless and sheer folly, at least until human ingenuity has come up with the solution, even if the chances are good, (to quote RMassera).
our free market society has been a relatuvley short one, and I would suggest thAt the Chinese juggernaut is about to steam roll us. the west has squandered its allocation. of capital, labour and technology in the pursuit of
so called individual freedom (happiness) and currently manifesting itself as massive debt both at an individual and for the US and Eurrope, at a government level. which has I would argue that the issued that
I think it can be argued the human ingenuity required to solve the grand issues that Grantham discusse are more likely to come from a command style economy than the US or European style economies.
landing man on the moon is nothing compared to issues facing the West both economically and environmentally and they aint goingto be solved by mindless optimism…more likely individual sacriific. and no I am not a greenie or a leftie..Ive been self emloyed and participated in the markets for over 20 years. we are in denial about( ie just kicked can down the road) both from an economic and environmetal / resource point of the view.
apologies for Ipad typos.
xiao fang xu
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Frederic Bastiat quotes:
“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it”.
rmassera
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Interesting interview. He sounds surprisingly negative about the world’s prospects. Yet, a significant shift towards renewable energy and solar power would be a “game-changer” for the world in much the same way that coal and oil fueled the industrial revolution. Encouragingly, the cost of renewable energy continues to fall towards levels that make it economic on a large scale. The continued growth in population will drive demand for finite mineral resources and relatively finite agricultural resources. However, one important resource (that exists in abundance) is human ingenuity, intelligence and imagination, which when impelled by necessity drives humankind to conceive of solutions and work earnestly toward them. Just consider that the United States landed man on the moon in 1969, a mere 24 years (a short generation) after propeller driven piston aircraft helped secure victory in the skies over Europe. We are making incredible technological advances at an incredible pace that shows signs of accelerating rather than abating. There may be wars and dramatic climatic events but there are good chances we will successfully rise to the big challenges our global population creates.
Roger Montgomery
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Excellent thoughts Rob…
gary telford
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Would really like to view the interview, anything special required to download?
Doesn’t seem to want to load, cheers.