Valuation-Informed Indexing #626: Grantham Is a Lot More Alarmed About Today’s Stock Prices Than Shiller

I’ve posted Entry #626 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Grantham Is a Lot More Alarmed About Today’s Stock Prices Than Shiller.

Juicy Excerpt: Grantham makes clear that numerous asset classes can be in bubbles at the same time. There is simply no reason to believe that there is always one asset class worth investing in. It’s not hard to understand why this would be so. Bubbles are irrational. If investors are irrational enough to cause one bubble, they are irrational enough to cause multiple bubbles. There is no referee in the sky who steps in to declare: “Sorry, investors, you already have created one bubble, that’s all that is permitted.” Irrational investors can create as many bubbles as they please.