FT News Briefing Grantham sells stocks, ECB buys bonds, ESG vows in a pandemic
Jun 5, 2020
Veteran market strategist Jeremy Grantham has reduced his global stock holdings, revealing a bearish perspective amidst market optimism. The European Central Bank is actively engaging in bond-buying to stimulate economic recovery. Meanwhile, sustainable investments are predicted to thrive post-pandemic, with their performance outpacing traditional assets. Fund managers emphasize the importance of ESG factors, indicating that companies overlooking sustainability may struggle in the future.
AI Snips
Chapters
Transcript
Episode notes
Grantham's Bearish Stance
- Jeremy Grantham, known for predicting market downturns, sees stock markets as overly optimistic.
- He has reduced his global equities exposure at GMO from 55% to 25%.
Grantham's Track Record
- Grantham correctly predicted the 2009 market upturn after the financial crisis.
- He also predicted the Japanese stock market crash of 1989 and the dot-com bubble burst.
Market Optimism and Risks
- The market rally since March is driven by the Fed's intervention and optimism about a virus treatment.
- Grantham believes the market is pricing in a best-case scenario, ignoring other risks like social instability.