A couple of days ago Jeremy Grantham (the G in GMO) published his latest quarterly newsletter (click here) in which there’s an excellent article on Asset Class Bubbles. I won’t bore you with my own re-interpretation of the newsletter but I just wanted to point out my appreciation for Grantham’s first chart explaining “the way the Investment World goes around”…
Source: GMO Quarterly Letter – Jan 2011
…i.e. “Career risk drives the institutional world”.