Jeremy Grantham and his bright folks at GMO, which manages billions, have just updated their 7 year return forecasts for different asset classes. They are predicting a NEGATIVE real return on stocks over the next 7 years, based on current valuations. Jim Cramer and the rest of the CNBC crowd would scoff at this outrageous prediction. Everyone knows stocks for the long run always works. Don’t fight the Fed. We’ve reached a new permanent high.

I take you back in time to yesteryear. It is December 31,1999. The Fed has been lowering interest rates in order to alleviate all of the Y2K impacts to computers and businesses around the world. Your brother in law is day trading Dot.com stocks. The stock market is hitting new highs every day. What could possible go wrong in this new and exciting internet age? Jeremy Grantham and his bright folks at GMO come out with their 10 year return forecast and predict that stocks will provide a NEGATIVE 1.9% real return over the next decade. They are laughed at and scorned. Please see the actual results versus their predictions below.

Who are you going to trust? Jeremy Grantham or Jim Cramer and his Wall Street shyster buddies?

9 thoughts on “WHEN GMO SPEAKS…..”

  1. Damnit. From the title of the article, I thought this was going to be about Monsanto and GM food crops. I had already started my engine, put on my best body armor, and was ready to charge headlong into the fray. What a downer.

  2. What’s wrong with genetically modified food ?E farmer are you a parasite getting money from the government to grow food or just dump it on the ground?There’s something about you that’s not right.

  3. Well, there was I expecting a full-on assault on the likes of Bayer, Monsanto etc.! Seems I’m not the only one somewhat disappointed.

    Hmm . . . . Maybe “us aggrieved parties” can start a Class Action against Admin for false advertising / bait-&-switch advertising. (Seeing as this is an American website, and “we all know everyone sues everyone else for even the slightest grievance” in the USA!!)

  4. Too funny.

    I’ve been thinking about a last ditch effort to pull my hub’s head from his ass and confront him with the truth on his “investments.”

    Of course, it may be a moot point as the bank has yanked our commercial mortgage and thanks to hub’s stellar maintenance he is finding it hard to find a sucker, ‘er banker, to gift him the money to keep the building for a few more years. He is one of the luckiest bastards I’ve ever met, so maybe we will get one more kick of this can, anyway.

    My plan was to try and find info on the Zimbabwe stock markets and the devaluation of their currency.

    I know that their market continued to “rise” and show “outstanding gains,” even as the value of said fiat plummeted in value.

    This continued on right up until the time the market was shuttered and thousands were wiped out completely.

    I, truly, doubt that even the proof in black and white would sway my own Rose-glasses optimist, especially considering he falls back on the “reserve currency” bullshit.

    As if it matters. Once the UN/Pacific treaty is realized our chances of survival will drop to negative territory. We won’t even be allowed to grow our own food on our own land, and more than likely, will be made guinea pigs for every poison touted as medicine the worlds’ scientists can produce.

    Things are bleak and growing bleaker. Meanwhile we cling to our pasts and swear that we can “fix” this.

    There will come a day when millions are going to wake up destitute after going to bed “well off.”

    Tick tock.

    As for Cramer, I often wonder where he plans on planting roots when his followers are decimated and his gravy train is shut off?

    I know it is not here, there are going to be many millions – exactly like my hub – that will be fighting pissed about believing the bullshit.

    At least this reminds me to go pick up some silver. I have faith that someday GMO will be vindicated (again), as will I, sadly, that day will also be the day the locks are being put on our building and my fear goes from financial ruin to death. Those as deeply in denial as my hub tend to overcorrect when reality rears its ugly head.

  5. Thank you Thinker.

    The research and investigation was the only part that I was happy about, I’m a geek that way.

    My dread is the situation that occurs when I present indisputable proof that his life-philosophy is based on false presumptions.

    I thought I married a free-thinker that could see beyond the TV/computer screen and understand the truth.

    Instead I married a man reared by ease and the status quo whom refuses to accept or acknowledge any information that would divorce him from his fantasies. I once paid a psychiatrist whom said as much as he fired us from couples therapy.

    Funny thing was that hub heard him say, “its all her fault,” even as he looked him in the eyes and told him he had to fix himself before he could ever hope to fix this sham of a marriage.

    Three years later and still the same. Hence, my uber frustration at the box I’ve sealed myself in.


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