Exploring Market Craziness and Bubbles in 2021

Exploring the frenzy and bubbles in financial markets in 2021, from meme stocks to commodity markets like gold and cocoa, emphasizing the influence of euphoria and FOMO on market behaviors and consumer goods like chocolate bars.

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Today’s guest is Catherine LeGraw, a member of GMO’s Asset Allocation Team.

In today’s episode, Catherine explains why this is “the best relative asset allocation opportunity we’ve seen in 35 years," and “we are building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen." She explains where she sees opportunity around the world today, why she’s excited about deep value and quality, and how she’s thinking about the Magnificent 7.

(1:34) - Welcome to our guest, Catherine LeGraw
(1:45) - Why Catherine is so excited about the opportunity set today (Record Highs…But We’re Still Excited)
(8:04) - The Magnificent 7 (Magnificently Concentrated)
(14:39) - The opportunity in deep value
(17:10) - Opportunities in foreign stocks
(20:38) - GMO 7-Year Asset Class Forecast (Feb. 29, 2024)
(23:46) - Currency implications
(24:56) - The current state of bonds
(30:46) - Other interesting assets
(34:35) - Jump in the Deep End / GMO
(34:59) - Catherine’s most controversial opinion
(37:04) - Catherine’s most memorable investment
(38:41) - What in Tarnation

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Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only). View their Economic Update Visual Deck.

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.