Grantham, Mayo, Van Otterloo co-founder Jeremy Grantham is a finance legend. He predicted and outmaneuvered nearly all major market bubbles in recent decades, including the late 1980s Japanese stock-market bubble, the late 1990s dot-com bubble and the 2006 housing bubble. As a result, GMO, as it is better known, has developed a loyal investor base that has learned to trust Grantham’s against-the-grain predictions despite their often pessimistic nature. In March 2000, Grantham insisted that the Nasdaq and S&P 500 indexes would drop significantly in coming years. Initially, this cost GMO many investors, who sought higher returns from managers investing in growth stocks…
