Jeremy Grantham said there is a 25 percent chance that China, the world’s second-largest economy, will “stumble” by next year over imbalances such as too much capital spending, an overheating real estate market or accelerating inflation.
Thomas Perkins beat 94 percent of his mutual-fund rivals in the past decade by investing in midsize companies. He now prefers giants such as Cisco Systems Inc. and Wal-Mart Stores Inc ., and his $12.4 billion Perkins Mid Cap Value Fund is almost at its limit for big-company shares.
Jeremy Grantham , chief investment strategist at Grantham Mayo Van Otterloo & Co., said the Federal Reserve’s policy of low interest rates has harmed the U.S. economy and if the central bank goes ahead with quantitative easing it could make the situation worse.
Treasuries rallied, sending 30-year bond yields to a 10-month low, as mixed economic signals bolstered haven demand before a jobs report tomorrow. U.S. stocks were little changed after a three-day rally.
Jeremy Grantham , who correctly predicted U.S. stocks would lose money in the past decade, said China’s “experimental” approach to reining in asset bubbles may help it avoid a U.S.-style housing market crash.
Jeremy Grantham, chief investment strategist at Grantham Mayo Van Otterloo & Co., said a longer period of below-average economic growth carries the risk of fueling a third stock-market bubble because Federal Reserve Chairman Ben Bernanke would likely keep interest rates low.