Quote

Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free and easy, cheap credit, and they need it for at least two or three years. Importantly, they also need serial pleasant surprises in such critical variables as global GNP growth.

Jeremy Grantham

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Jeremy Grantham
Age: 86
Born: 1938
Born: October 6
Investor
Manager
Herts
Robert Jeremy Goltho Grantham
Also
Economic
Investment
Surprises
Together
Animal
Global
Bubbles
High
Credit
Spirits
Materialize
Need
Free
Critical
Cheap
Serial
Needs
Easy
Surprise
Thin
Serials
Years
Spirit
Air
Extremely
Favorable
Three
Growth
Pleasant
Variables
Two
Least
Fundamentals
Importantly

More quotes by Jeremy Grantham

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Americans are just about the worst at dealing with long-term problems, down there with Uzbekistan, but they respond to a market signal better than almost anyone. They roll the dice bigger and quicker than most.
Jeremy Grantham
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The stock market is overpriced. Everything is overpriced. Junk is king.
Jeremy Grantham
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You don't get rewarded for taking risk you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk you are going to be punished for it.
Jeremy Grantham
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Remember that history always repeats itself. Every great bubble in history has broken. There are no exceptions.
Jeremy Grantham
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I like to be right. I try not to miss the big ideas, forget the little ones, and try to get them right. End of job description.
Jeremy Grantham
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You can't run the economy on BMWs alone. If the average person is in a pickle, how do you have a healthy economy?
Jeremy Grantham
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I find the parallels between how some investors refuse to recognise the trends and our reaction to some of our environmental challenges very powerful. There is an unwillingness to process unpleasant data.
Jeremy Grantham
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The language it's too late is very unsuitable for most environmental issues. It's too late for the dodo and for people who've starved to death already, but it's not too late to prevent an even bigger crisis. The sooner we act on the environment, the better.
Jeremy Grantham
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The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value. We all need to adjust our behavior to this new environment. It would help if we did it quickly.
Jeremy Grantham
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Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people who like to watch the locomotive coming and get run down in the name of discipline.
Jeremy Grantham
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Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly.
Jeremy Grantham
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We live on a finite planet. We have finite resources, and we're running out of good, arable land.
Jeremy Grantham
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Capitalism believes that its remit is exclusively to make maximum short-term profits.
Jeremy Grantham
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Battering down solar cells on the roofs of Wal-Marts in California. I think that will be some of the highest-return investments that anyone ever makes.
Jeremy Grantham
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There is a lot of pain still to be had in the equity markets, particularly aimed at the risky end of the spectrum. We think the fair value on the market is about a third lower in the U.S. . .
Jeremy Grantham
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Modern agriculture has been accurately described as a way of turning oil into food. As the price of oil continues to rise, so will the price of food.
Jeremy Grantham
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The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost impossible for professionals.
Jeremy Grantham
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Equities are boring bonds are disgusting.
Jeremy Grantham
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The pure administration of Graham-and-Doddery really needs a long-term lock-up like Warren Buffett has, or it will have occasional quite dreadful client problems.
Jeremy Grantham
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I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional.
Jeremy Grantham