Grantham prediction for 2010

Grantham: Markets getting silly - The Globe and Mail

“I have some modest hopes for a collective sensible resistance to the current Fed plot to have us all borrow and speculate again,” he said. “I would still guess (a well-informed guess, I hope) that before next year is out, the market will drop painfully from current levels.”

For him, “painfully” implies a dip of 15 per cent – but a drop below fair value is more likely, and that could bring a 22 per cent setback.

“Unlike the really tough bears, though, I see no need for a new low,” he said.

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