Market Review and Trends
Jeremy Grantham – Market will crash badly after S&P tops 2,250
By A Path to Forever Financial Freedom (3Fs)  •  September 4, 2014
The week has been really productive for me as I've managed to stay at home and read a few good articles and understand a bit on the valuation theories by various asset fund managers, one of which is Jeremy Grantham whose articles have been published a few times by fellow blogger Drizzt.
For those who are not familiar on the guy, he is the asset fund owner of asset management firm, GMO who has correctly predicted the dotcom market bubbles in 2000 and the housing market bubbles in 2008 based on his theory which I thought was interesting to share.
To him, a bubble is indicated by a 2-sigma event using Tobin's Q indicator and when that happens, he believes the market will eventually corrected itself by reversing to the mean. Past market bubbles, including the dotcom bubble in 2000, have exceeded the 3.2-sigma before imploding while the 2008 ...
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By A Path to Forever Financial Freedom (3Fs)
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