There’s too much bullish bias and herd mentality among financial advisors who fear losing their jobs when they should be focused on long-term returns, value manager Jeremy Grantham says.
The blunt Grantham, co-founder of asset manager GMO LLC, told advisors at the Morningstar Investment Conference in Chicago Friday that the follow-the-pack mentality is driving up prices of some stocks and corporate bonds beyond fair value and hurting values of other investments. The bulls are wrong, he says because profit margins at U.S. companies are bound to fall in a weak economy.
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