Editors Note:- The source article, published by ‘Sovereign Investor’, is particularly pertinent for its forecast of Timber (paulownia) investment versus other asset classes over the next 7 years.
Jeremy Grantham compares investment returns.
Jeremy Grantham is on the Board of Directors and is chief investment strategist at Grantham Mayo van Otterloo (GMO) which manages $100 billion in funds.
Grantham is highly regarded in the investment world and his forecasts are avidly followed. He is reported to have got it right about the dot.com bust and warned of the 2008 market crash. Other prescient warnings were of the Japanese property collapse.
A more recent forecast is how he sees various asset classes performing over the next 7 years. The following graph forecasts annual real returns over the period.
Grantham’s recommendations are clear: «Long term investors should consider reducing exposure to U.S. stocks and bonds, and increasing exposure to emerging-market stocks and timber».
To obtain more information on Jeremy Grantham and GMO visit their website at http://www.gmo.com/
The source article was authored by Evaldo Albuquerque of Sovereign Investor – August 2013
IPaulownia Note:- We have referenced this in our published articles for its view on the Timber investment market which of course includes Paulownia timber investment and our paulownia plantations in Spain.