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February 13, 2012 22:46 GMT
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  1. #1
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    Default We should expect a stock market recovery

    Jeremy Grantham’s (GMO) take on the stock market outlook is summarized in his recent quarterly newsletter, in which he says: “The current stimulus is so extensive globally that surely it will kick up the economies of at least some of the larger countries, including the US and China, by late this year or early next year. (This seems about 80% probable to me, anyway.) Anticipating this, we should expect a stock market recovery - which normally leads economic recovery by six months, plus or minus two - sometime between two months ago and, say, August, which the astute reader will realize implies that this rally may already be it.”

  2. #2
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    During normal conditions, you have a good grasp on expectations of how markets relate to each other and how one market might respond to certain conditions relative to another. With this information you can build a diverse portfolio that gives you a level of protection against vulnerabilities in individual markets or securities.

  3. #3
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    I believe there is still a greater chance for the stock market to be recovered...

  4. #4
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    Default

    Quote Originally Posted by Luckyfish View Post
    Jeremy Grantham’s (GMO) take on the stock market outlook is summarized in his recent quarterly newsletter, in which he says: “The current stimulus is so extensive globally that surely it will kick up the economies of at least some of the larger countries, including the US and China, by late this year or early next year. (This seems about 80% probable to me, anyway.) Anticipating this, we should expect a stock market recovery - which normally leads economic recovery by six months, plus or minus two - sometime between two months ago and, say, August, which the astute reader will realize implies that this rally may already be it.”
    Thank you so much for your post.

  5. #5
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    A lot of hopeful recovery in the air for the leading currencies.. I guess only time can tell. In the meantime, trade with caution!

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