This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bull and Bear Served at Fund Manager Dinner

In the bull corner, as usual, was Jeremy Siegel -- professor at University of Pennsylvania's Wharton School of Business, and author of the popular investment tome Stocks for the Long Run. In the bear corner, also as usual, was Jeremy Grantham, veteran chairman of Boston fund firm GMO.

And if Wall Street takes a downward step in the next few weeks, I think I'll know why. Nearly 600 of Boston's top fund managers and analysts turned up Monday night for the annual Boston Securities Analysts Society's dinner. And when the two Jeremies went head to head about the stock market over coffee, the bearish Grantham probably took it on points.

He also had the added advantage of speaking second.

It was generally good-natured, fought with PowerPoint presentations and Bloomberg charts. But it had some pointed moments. Grantham, at one moment, accused Siegel of talking "B.S." and came close to suggesting his opponent was a bit of a shill.

Grantham, as often, outlined a doomsday scenario. "Everything is overpriced," he said. And he meant everything -- U.S. equities, foreign equities, emerging markets, bonds, housing and commodities. The whole shebang. Even fine art. "This year the cheap asset class is cash," Grantham said.

He mustered more than a dozen overhead charts to argue that, seven years after the Wall Street peak of March 2000, we are still in an equity bubble. Shares are too expensive compared to profits, he said. And those profits, currently at record levels compared with the national economy, are also artificially high, he said. He gave a 50% chance that profit margins would start to fall again within a year. Within two years, he added, it was "a near certainty."
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CSCO $26.45 0.04%
GOOG $698.25 0.37%
JNJ $112.57 0.31%
MSFT $50.03 0.32%
PEP $104.27 0.24%


Chart of I:DJI
DOW 17,697.55 +46.29 0.26%
S&P 500 2,054.68 +3.56 0.17%
NASDAQ 4,725.20 -0.4390 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs