Jeremy Grantham says stocks could be heading for a ‘melt-up'

[Wildreamz]

Huge share price drop is one thing, that alone shouldn't deter you from buying at low PE. The reasons behind the huge share price drop is much more interesting, and your opinion on how the future will materialized will determine whether if you should buy it today or not.

I have expressed my views on Facebook's fundamental business and their "Metaverse" in this post, before the huge share price drop: https://www.valuebuddies.com/thread-1649...#pid164054

[specuvestor]

Reminded of this post to say that 2022 benchmark plus CPI or plus treasury is going to be very different

Would be tough to beat CPI plus 5% this year

Personally I think beginning of year 12 months treasury plus 3% is reasonable figure to beat. Absolute return funds should not be beta funds.

A 3% alpha is respectable but not sexy if you do a long/short. So to sell it has to be juiced up.

I see. Very interesting indeed. Most of us just know about his public positions on the state of the market. Yet it only represents a relatively small amount of AUM. His overall fund profile is actually quite similar to other funds with heavy FAAMNNG weightage.

The more you know.   

Also I think it's rather unusual to benchmark against CPI, another very interesting choice.