Jeremy Grantham's Warning: Avoid US Stocks, Look Elsewhere
Legendary fund manager Jeremy Grantham predicts a potential 50% drop in the stock market and advises investors to avoid U.S. stocks due to overvaluation. However, his most interesting call is to focus on high-quality stocks, which he refers to as a "free lunch." Historical data supports this strategy, showing that high-quality stocks have consistently outperformed the overall market, especially during market downturns. While not every financial expert agrees, evidence suggests that investing in high-quality stocks can lead to better long-term returns. Investors may consider funds like iShares MSCI U.S.A. Quality Factor ETF and MSCI International Quality Factor ETF for potential gains and lower risk in the event of a market slump.