Bear market in US could have a further seven years to run

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Non-us equities offer the best opportunities, says jeremy Grantham

The bear market in US equities could easily have a further seven years to run, according to GMO chairman Jeremy Grantham. He is advocating overweight positions in non- US equities ex-Japan believing they offer the best arbitrage opportunities. Within US equity markets, the S&P remains overvalued despite falls over the past three years, he added. Grantham, co-founder of global investment group GMO, said based on valuations, fair value for the S&P 500 is around 6,700 rather than the current 9,000 level. P/Es, now at around 22 times, will eventually revert back to a mean of around 14 ti...

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