US stocks close mixed with Nasdaq near record as investors weigh new Fed guidance

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Deutsche Bank said retail investors have been key players in the stock-market rally.

US stocks closed mixed on Thursday as investors digested the Federal Reserve’s accelerated interest-rate-hike guidance. The Nasdaq closed near a record high, while the Dow Jones Industrial Average and the S&P 500 were down on the day.

Based on new projections from the Federal Open Market Committee, the US central bank will raise its benchmark interest rate two times in 2023.

“Overall, we characterize this meeting as being slightly hawkish, but not overly so, given the committee acknowledged the improving economic conditions, but remained steadfast on its approach to recent inflation data,” Calvin Norris, a US rates strategist at Aegon Asset Management, said in a statement.

Norris noted the eventual tapering of its quantitative-easing purchases after “substantial further progress” has been made in the economy.

The benchmark 10-year Treasury yield edged lower to 1.518% from Wednesday’s 1.569%.

On Wednesday, all three major stock indexes closed lower after the FOMC announcement.

Here’s where US indexes stood at the 4 p.m. close on Thursday:

GameStop could be one of the newest stocks on a list of the 1,000 largest companies thanks to the army of retail traders that have pushed the share price to dizzying highs. But AMC Entertainment might have just missed the cutoff.

In the digital-asset space, bitcoin was trading 3.35% lower at $37,796. The cryptocurrency has been trading sideways after its massive crash in May but reclaimed $40,000 this week. Last month’s massive sell-off slashed bitcoin’s market capitalization by almost 30% to $766 billion.

Mike Novogratz, Galaxy Digital’s CEO and a longtime cryptocurrency bull, said the true value of the bitcoin lies mainly in the community it has built and that it is valuable because people say it is. He also said Elon Musk’s eclectic tweets weren’t good for cryptocurrencies.

Meanwhile, Coinbase cofounder Fred Ehrsam said 90% of nonfungible tokens would eventually be worthless and that people shouldn’t dismiss dogecoin.

Oil prices slipped. West Texas Intermediate crude fell 1.29% to $79.22. Brent crude, oil’s international benchmark, ticked lower by 1.53% to $73.25 a barrel.

Gold dropped 2.27% to $1,777.04 an ounce. The precious metal tumbled on the Fed’s accelerated rate-hike projections.

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US stocks mixed as investors digest the Fed’s accelerated interest-rate hike guidance

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US stock market investors are feeling optimistic about the economy.

US stocks traded mixed on Thursday as investors digested the Federal Reserve’s accelerated interest-rate hike guidance.

Based on new projections from the Federal Open Market Committee, the central bank will raise its benchmark interest rate two times in 2023, compared to a prediction at its March meeting of zero rate hikes for the same period.

The Fed had previously placed its first forecasted rate hikes past 2023, suggesting it was willing to let inflation run hot to let the US economy recover.

“Our preferred explanation is that the FOMC takes a more firmly backward-looking interpretation of average inflation targeting than we had assumed,” Goldman Sachs Economics Research said in a note. “With average inflation over the cycle already on track to exceed 2% by this year, this interpretation appears to lower the future inflation bar for liftoff.”

Here’s where US indexes stood at the 9:30 a.m. open on Thursday:

Weekly jobless claims came in at an unadjusted 412,000 last week, according to the Labor Department. The median estimate from economists surveyed by Bloomberg was for 370,000 claims. The reading snaps six straight weeks of declines that had pulled claims to several pandemic-era lows.

“While an upward move in jobless claims is not necessarily what we want to see on the economic recovery front, it’s still a pretty low number for the pandemic-era and jobless claims have been marching steadily lower since early spring,” Mike Loewengart, managing director of investment strategy at E-Trade Financial, said.

A boost in jobless claims, however, means that the Fed could be less likely to raise rates faster than the market is anticipating, he said.

Meanwhile, CureVac tumbled by as much as 50% after the German pharmaceutical firm said its COVID-19 vaccine candidate failed in a clinical trial.

In cryptocurrencies, bitcoin was trading slightly lower at around $38,725. The cryptocurrency has been trading sideways following the massive crash in May but reclaimed $40,000 this week.

Last month’s massive selloff slashed bitcoin’s market capitalization by almost 30% to $766 billion.

The benchmark 10-year Treasury yield edged lower to 1.553% from Wednesday’s 1.569%.

Oil prices slipped. West Texas Intermediate crude fell 0.47% to $71.81. Brent crude, oil’s international benchmark, ticked lower by 0.63%, to $73.92 per barrel.

Gold dropped 1.92%, to $1,783.54. The precious metal tumbled on the Fed’s accelerated rate-hike projections.

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Global stocks tumble, gold slides after the Fed signaled it could hike rates sooner than expected

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Global stocks slid on Thursday morning, as gold prices sank and the dollar strengthened, after the Federal Reserve signaled a rise in US interest rates could come sooner than expected.

US stock futures pointed to a lower open ahead, following losses for the major indexes in the wake of the news. Dow Jones futures were last down 0.46% at 4.55 a.m. E.T., while S&P 500 futures dipped 0.49%, and Nasdaq futures fell 0.69%.

The FOMC’s latest outlook showed more Fed officials are expecting interest-rate rises in 2023, when at its last meeting, no hikes were projected until after that year. Markets interpreted this as a sign the US central bank might be open to letting inflation heat up to help the US economy recover from the pandemic.

“While not a full turn away from ‘transitory’, it was a clear signal that the Fed is open to the idea that some aspects of the recent price increases can be more permanent,” Jim Reid, research strategist at Deutsche Bank, said in a note.

“This was as hawkish as they could have possibly gone at this stage within realistic expectations,” he said.

Also seen as important was that for the first time, Fed officials discussed tapering, or slowing down, its multi-trillion-dollar asset-purchase program, brought in to help the financial system during the COVID-19 crisis.

Yields on the five-year Treasury note, which are highly sensitive to switches in Fed policy, logged the most volatility. The yield jumped to as much as 0.91% from 0.78% immediately before the announcement and closed the day with an 11-basis point increase. By Thursday, it was holding steady around 0.886%.

The US dollar moved higher, while gold prices stumbled by almost 3% on Thursday morning. The metal was last down 2.4%, trading at $1,806.83 an ounce.

“The Treasury and foreign-exchange markets were the main drivers against gold prices following the FOMC decision,” said Thomas Westwater, an analyst at DailyFX. “Given the large drop, bulls may need to wait for more hands to shake out before attempting to make a decisive move higher. That said, price may consolidate in the coming days before the next directional move.”

Oil prices steadied on Thursday, broadly flat after Brent crude broke a five-day rally on Wednesday. Brent was last down 0.03%, trading at 74.37 per barrel, while WTI was unchanged, trading at $72.15 per barrel.

European stock markets followed their US counterparts lower. Frankfurt’s DAX was last down 0.09%, the FTSE 100 in London slipped by 0.51%, and the Euro Stoxx 50 fell by 0.18%.

Asian markets closed out another mixed session. The Japanese Nikkei 225 lost 0.93% while Hong Kong’s Hang Seng index gained 0.19% and China’s Shanghai Composite, which fell earlier in the week on the back of political tensions between China and NATO, regained strength and inched 0.21% higher.

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Bitcoin mania is making investors ignore other assets that have far more upside potential, an investment chief says

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A mural designed by Stacey Coon, Anastasia Sultzer, and Nanu Berks is seen at the Bitcoin 2021 conference.

Investment adviser Rich Bernstein said in a CNBC interview Monday that bitcoin is a bubble, and crypto mania is making investors ignore other asset classes that have more potential.

Institutional acceptance of bitcoin and other major cryptocurrencies has led to mainstream adoption, making it one of the most trending alternative assets. The fear of missing out on the cryptocurrency buzz led to a jump in the number of crypto wallets to 73 million in May this year, from about 49 million at the same time in 2020, according to data from Statista.

“It’s pretty wild,” Bernstein, the CEO and CIO of Richard Bernstein Advisors, told CNBC’s “Trading Nation.” “Bitcoin has been in a bear market, and everybody loves the asset. And oil has been in a bull market, and it’s basically, you never hear anything about it. People don’t care.”

According to the star investor, oil is the most ignored asset class and commodity traders have good reason for optimism.

“We’ve got this major bull market going on in commodities, and all people are saying is that it doesn’t matter,” he said.

Bitcoin was last trading 1.3% higher at around $39,815 as of 7:55 a.m. ET on Tuesday, but it’s fallen more than 36% in the past two months. Brent crude rose 1.2% to $73.75 and West Texas Intermediate rose 1.4% to $71.90. Both are up 97% and 89%, respectively.

By officially establishing itself as an asset class, the most popular digital asset has had a historic year as Wall Street titans like Goldman Sachs opened its trading floor to it. But Bernstein thinks bitcoin’s bull run isn’t sustainable in the longer term.

Investors could suffer portfolio declines over the next two to five years if they overlook other asset classes, he said. “The side of that see-saw you want to be on is the kind of pro-inflation side which most people are not investing in,” he said.

Bernstein listed energy, materials, and industrials as his top bets “because that’s where the growth is going to be” within the next six to 18 months.

Read More: Goldman Sachs says buy these 37 stocks that will offer strong returns with minimal risk through year-end as growth names regain leadership

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US stocks hover near record high as investors await Fed comments on inflation

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  • US stocks hovered near record high Tuesday as investors await comments from the Federal Reserve.
  • The FOMC decision is due Wednesday after a two-day policy meeting, with most economists anticipating the central bank will leave its policy mostly unchanged.
  • Bitcoin rose past $40,000 after Elon Musk tweeted about Tesla and payments.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks hovered near record highs Tuesday as investors await comments from the Federal Open Market Committee about a timetable for scaling back on its accommodative policies.

The FOMC decision is due Wednesday after a two-day meeting, with most economists anticipating the central bank will leave its policy mostly unchanged. Investors will be focusing on tapering discussions, the latest economic projections, and inflation.

“It is going to be increasingly difficult for the Fed to soothe markets with its dovish stance, as they probably will be discussing tapering and will have to revise up forecasts for economic growth and inflation,” Bank of America said in a note on Tuesday.

While the central bank can exhibit patience this time, the situation will not be the same by the July and September FOMC meetings, Bank of America added.

In March, Fed officials saw consumer prices rising 2.4% in the fourth quarter of 2021 from a year earlier. That pace, they said, would be consistent with their goal of 2% average annual inflation over the long run.

The S&P 500 closed at a record high on Monday for the second trading day in a row. The tech-heavy Nasdaq also closed at a record.

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday.

Meanwhile, US retail sales fell 1.3% in May, the Census Bureau said Tuesday. Economists surveyed by Bloomberg held a median estimate for a 0.7% decline. The decline places monthly sales at $620 billion and just below the record-high seen in April. The April sales data was revised higher to a 0.9% jump from an initially unchanged reading.

Bitcoin finally hit the $40,000-level on Monday after trending below that level to date in June. Still, many, including investment adviser Rich Bernstein, believe that bitcoin is in a bubble, and the crypto mania is making investors ignore other asset classes that have more potential.

Bitcoin bull Michael Saylor’s MicroStrategy for its part plans to sell as much as $1 billion in common shares with an eye to adding to its huge holding in the cryptocurrency, it said in a filing with the Securities and Exchange Commission.

Oil edged higher. West Texas Intermediate crude was up 1.17% to $71.71 per barrel. Brent crude, oil’s international benchmark, gained 1.02% to $73.60 per barrel.

Gold slid 0.12% to $1,865.09 per ounce.

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Shell considers selling assets in the largest US oil field, Reuters reports, highlighting pressure to focus on low-carbon investments

FILE PHOTO: Ben van Beurden, chief executive of Royal Dutch Shell, speaks during a news conference in Rio de Janeiro, Brazil, February 15, 2016. REUTERS/Sergio Moraes/File Photo
Royal Dutch Shell Chief Executive Ben van Beurden.

  • Royal Dutch Shell is reviewing its holdings in the Permian Basin, Reuters reported on Sunday.
  • That may mean Shell sells some or all of its 260,000 acres in the oil field, Reuters reported.
  • Shareholders and activists have pressured oil corporations to reduce their carbon footprints.
  • See more stories on Insider’s business page.

Giant oil corporation Royal Dutch Shell is considering shedding some or all of its assets in the Permian Basin, Reuters reported on Sunday, underscoring the pressure Shell and its competitors are under to focus on transitioning to a carbon-neutral economy and combat climate change in the coming decades.

The Netherlands-based company has some 260,000 acres in the southern US oil field, the largest in the country, that could be worth as much as $10 billion, Reuters reported, citing sources familiar with the matter. Shell declined to comment to Reuters.

Shell produces some 160,000 to 170,000 barrels of oil per day in the Permian Basin, upstream director Wael Sawan said on May 25 during a meeting with analysts. Sawan has said that over the last year, the company has lowered its Permian production by some 20,000 barrels a day in an effort to preserve cash.

Shareholders and activists have intensified calls on oil companies like Shell, Exxon Mobil, and Chevron to reduce their carbon emissions in recent years. They have grown louder, and more successful, this year.

Investors’ efforts to push for change reached a landmark moment this spring when Exxon shareholders elected to install three new directors on the oil giant’s board in a bid to accelerate its shift toward cleaner energies.

Environmental- and social-related shareholder proposals have seen record support this year, according to a report last week by RBC Capital Markets analysts Sara Mahaffy and Lori Calvasina. Just shy of one-quarter of such proposals at US companies have received majority support, up from just 5% in 2019.

Shell earlier this year outlined a plan that included targets like cutting the carbon intensity of the energy products it sells by at least 6% by 2023 and 20% by 2030, compared to 2016 levels.

But its targets were challenged last month when a Dutch court ordered Shell to cut its carbon emissions by an accelerated net 45% by 2030 from 2019 levels. The company called that ruling “disappointing,” and said it will focus on its efforts to reduce its carbon footprint.

Shell, led by Chief Executive Chief Executive Ben van Beurden, has also said it believes its annual oil production peaked in 2019 and will likely fall by 1% to 2% a year until 2030.

“The Permian indeed is part of that core position simply because we do see the running room in there, and we do actually believe it is a high-quality position, plus a high-quality operation that we have there,” Van Beurden told an analyst during a call in February, referring to the company’s strategy in the oil field. “And therefore, we will continue to invest in it until, indeed, it doesn’t make sense anymore.”

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Stock investors are poised to miss out on soaring oil prices with energy only making up 2% of portfolios, BofA says

FILE PHOTO: A section of the BP Eastern Trough Area Project (ETAP) oil platform is seen in the North Sea, around 100 miles east of Aberdeen in Scotland, Britain, February 24, 2014.    REUTERS/Andy Buchanan/Pool/File Photo
An oil platform stands in the North Sea in Scotland.

  • The energy sector has a low weighting in most long-only investment portfolios, according to Bank of America.
  • Low exposure to energy will mean many investors will lose out on potential gains to be made as oil prices rise.
  • The energy sector is up about 45% this year compared with the S&P 500’s roughly 13% gain.
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Oil prices are primed to push higher in the near term but many investors may miss out on building wealth from those moves because most portfolios have very low exposure to the energy sector, according to Bank of America.

Supply constraints and growing demand for oil as coronavirus vaccinations allow more people to return to work and travel are factors that will contribute to drawing up the commodity’s value and build on price gains of at least 40% this year for both Brent crude and West Texas Intermediate crude.

The impact of the upside risk, however, may bypass numerous investors as the energy sector has 2% of an average long-only portfolio manager’s weight. This “paltry” level is about half as much as the 4.2% exposure to tech-behemoth Facebook, said Savita Subramanian, head of US equity strategy and quantitative strategy at BofA Securities, in a note published Thursday.

“Not owning Energy wasn’t painful when the sector was <2% of the S&P 500,” she wrote. “But the astronomic 92% price return since October has bumped Energy’s weight to 3%; another big move in oil may be felt more acutely.”

The energy sector collapsed in 2020, losing nearly 40% as oil prices briefly dropped into negative territory in a market rocked by a plunge in demand due to the coronavirus pandemic. The sector, along with oil prices, managed to dig out of the red in part as OPEC and its allies cut production to address the buildup in oil stockpiles.

The energy sector this year has gained 45% compared with the S&P 500 index’s nearly 13% rise to record highs. Brent crude and WTI prices over the past 12 months have run up by nearly 90% and 95%, respectively, leaving Brent to fetch more than $72 a barrel, and WTI to trade above $70 a barrel.

“If Energy doubled again, and all other sectors saw average returns, investors with no Energy exposure would sacrifice a full 3 percentage points of alpha,” or returns above a compatible benchmark index, wrote Subramanian. Losing out on 3% would more than obliterate relative gains of 0.59% this year, she said.

Meanwhile, ESG funds centered on environmental, social, and governance issues such as clean energy stand to underperform even more given their 70% underweight in the sector, said the strategist.

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S&P 500 hovers near record highs on continued economic optimism and Fed support

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US stock market investors are feeling optimistic about the economy.

  • US stocks rose with the S&P 500 hovering near record highs Friday as investors remain optimistic about the US economy.
  • The benchmark index on Thursday broke both its intraday and closing records.
  • The 10-year Treasury yield was around 1.455% Friday, in a sign that the market believes strong inflation will prove transitory
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks rose on Friday, with the S&P 500 hovering near record highs as investors continue to remain optimistic about the US economy amid support from the Federal Reserve.

The benchmark index on Thursday broke both its intraday record and closing record, to finish the session at 4,239.18.

Tom Lee, managing partner and the head of research at Fundstrat Global Advisors, said the breakout to new highs was presaged by the upside breakout last week.

“Our base case of a surge in S&P 500 to 4,400 before mid-year 2021 remains intact,” Lee said in a note.

While Thursday’s data showed that US inflation surged more than expected in May, weekly jobless claims fell to a pandemic-era low.

The 10-year Treasury yield was trading around 1.455%, two basis points above its March low, in a sign that the market believes strong inflation will prove transitory, as the Federal Reserve has stated.

Here’s where US indexes stood at 9:30 a.m. open on Friday:

Bitcoin was trading at $37,421. The world’s most popular cryptocurrency climbed to a one-week high Thursday, hitting $38,000 as the cryptocurrency shrugged off renewed calls for tighter regulation.

Gold slipped by 0.57% to 1,887.18 per ounce. The precious metal lost some ground as the US dollar rose.

Oil prices fell. West Texas Intermediate crude edged lower by 0.07% to $70.24 per barrel. Brent crude, oil’s international benchmark, was down 0.07%, at $72.47 per barrel.

The International Energy Agency said on Friday that global oil demand is set to return to pre-pandemic levels by the end of 2022, but renewed COVID outbreaks and low vaccination levels in developing countries will make the recovery uneven.

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Global oil demand to return to pre-pandemic levels next year, although COVID hotspots will make the recovery uneven: IEA

Oil rig
  • Global oil demand is set to return to pre-pandemic levels in 2022, the International Energy Agency said.
  • COVID will keep impacting demand due to continued outbreaks, unequal vaccination levels and societal shifts.
  • Accelerating production in the US and OPEC+ countries will boost supply in 2022, the IEA said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Global oil demand is set to return to pre-pandemic levels by the end of 2022, but renewed COVID outbreaks and low vaccination levels in developing countries will make the recovery uneven, the International Energy Agency said on Friday.

The IEA issued its first forecast for 2022 in its monthly oil report, predicting that demand would build on 2021’s growth of 5.4 million barrels per day and increase by an additional 3.1 million barrels per day in 2022, reaching 100.6 million barrels per day by the end of next year.

Recovery will however be uneven as COVID-19 continues to affect non-OECD countries with slower vaccination rates and the pandemic caused shifts in consumer behaviour.

“Continued teleworking in OECD countries […], higher electric vehicle sales and increased car efficiencies for new models will weigh on growth.” the IEA believes, adding that ongoing border closures will also keep impacting fuel orders. They had slowed down significantly during the pandemic and associated lockdowns that prevented international and domestic travel.

Jet fuel and kerosene demand are therefore still expected to be 11% lower at the end of 2022 compared to before the pandemic. At the same time, LPG and ethane demand will rise around 5% above pre-pandemic levels and gasoline and diesel orders will rebound to their former standards.

The IEA left its outlook for 2021 demand mostly unchanged from last month. The more stable COVID-19 situation and continued recovery and economic reopening in OECD countries caused demand to rise in the first half of the year. However, slow vaccination rates in non-OECD countries led the IEA to reduce forecasts for the second half of the year.

Overall 2021 demand expectations were therefore lowered to 50,000 barrels per day, with annual growth now expected to be around 96.4 million barrels per day.

Global oil supply is set to grow more quickly in 2022, as the US is set to recover from two consecutive years of production declines and will account for much of the increase in supply from outside OPEC+. The IEA predicts non-OPEC countries will supply around 1.6 million barrels per day more next year, leaving OPEC+ to produce an additional 1.4 million barrels per day to meet growing demand.

“The boost in non-OPEC+ oil supply next year comes despite financial constraints and mounting pressure from climate activists and shareholders on major oil companies and independents,” the report said.

In the shorter term, the IEA said OPEC+ may have to revise its current supply policies in the second half of 2021, as disparities between demand and supply start developing and are set to affect markets in the last quarter especially.

Finally, sanctions on Iranian oil exports will also play a role in increased supply. If Tehran can strike a deal with global powers over its nuclear activities and sanctions are lifted, Iranian crude could flood markets and make the country the biggest driver of supply growth in 2022, the agency said.

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Jeremy Grantham said US stocks are heroically overpriced, copper should shoot higher, and that he had an ‘overprivileged’ lockdown in a recent interview. Here are the 14 best quotes.

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Jeremy Grantham cofounded the asset management firm GMO.

Legendary investor Jeremy Grantham said US stocks are hugely overpriced, predicted copper prices should shoot higher in the coming years, and that he had an “overprivileged” lockdown in an interview at the Morningstar Investment Conference Australia this week.

The cofounder of asset management firm GMO also ripped into the major oil companies, saying they’re too cynical to engage with. And the 82-year-old said the SPAC boom and the Nasdaq had probably peaked.

Here are the 14 best quotes from the interview.

On the investing landscape

1. “The developed world is merely overpriced, no big deal on its own, but the US is heroically overpriced, and emerging markets is actually fairly cheap… I have complete confidence that if you bought the intersection, cheap emerging market stocks, that you would get a perfectly handsome 10- or 20-year return. And I am pretty darn confident that you will not get a handsome ten-year return from say the S&P 500 or Nasdaq.”

2. “[The] Nasdaq has, by the way, peaked quite a long time ago, two months ago…. This time, my guess is the super SPACs peaked in January, the Nasdaq peaked in February. And maybe in a few months, the termites will get to the rest of the market.”

3. “The super crazies are really anything to do with electrification. EVs, for sure, Tesla is the king of that group, [and] they’re down 30%. The SPAC index is down 30%, the last 10 SPACs having announced a deal are now [trading at] less than the $10 that they do these deals at.”

4. “There is no way copper will not rise hugely from here because of the electrification of everything. And that goes for cobalt, that goes for lithium. And all of the metals except iron and aluminum are really scarce… You have to be reconciled in the long run for a different world of commodity prices.”

On dangers for markets

5. “The higher an asset price is, the lower the return. So having high-priced assets is great for retirees, old folks like me selling off my assets. But for everybody else, it means you compound your wealth more slowly… So I welcome lower asset prices, which I’m confident will come.”

6. “It won’t take bad news. It won’t take a thoroughly bad economy to start bringing this market down. It will take a perfectly good economy and perfectly optimistic outlook, but a little less than it used to be a week ago, a month ago.” – Grantham also spoke of “pessimism termites” that would start to eat away at investor confidence.

7. “You look around and you find that real estate is suddenly pretty bubbly in almost every interesting market in the world… You can’t keep an asset class like housing, where the house doesn’t change, and you’re just marking it up in real terms year after year. Eventually, there’ll be a day of reckoning.”

8. “Don’t pull a Japan. Japan had the biggest bubble in history in land and real estate, bigger than the South Sea Bubble in my opinion. It also had the biggest equity bubble of any advanced country. [Now] 32 years later their land is not back to where it was in 1989 and their stock market is not back in nominal dollars to where it was in 1989. And that’s a perfect example, as the higher you go, the longer and greater the fall.”

On lockdown

9. “We had a totally overprivileged existence. We’re down in beautiful countryside with 50 acres of our own of woodland… And I did quite a lot more research than normal because I wasn’t wasting my time on airplanes. So my carbon footprint was magnificent, and I was reduced to worrying about rather small things like amortizing my tie supply. If I could wear three at a time, I would.”

On the oil companies

10. “The oil industry ran a deliberate campaign of obfuscation, political propaganda, to deliberately mislead the world… That should be criminal. It certainly has had a very damaging effect… It’s cost the world perhaps as much as 10 years of progress on climate change action and government support and sensible regulation.”

11. “I think engagement for the routine concerns [with companies over climate change] is the way to go… But with oil companies, I think they’re simply too cynical and too clever for engagement to count.”

On value investing and venture capital

12. “[Value investing] has had a brutal 11 years. It was the worst 10 years in history for value versus growth. And then last year was by far the worst single year. So you had the worst decade followed by the worst single year… We’ve had a lot of problems over the last 11 years.”

13. “American capitalism seems to me past its prime, a little fat and happy, not aggressive enough. There’s only half the number of people working for firms [that are] one and two years old than there were in 1975. So we’re losing some of our dynamism.”

14. “But there is one thing where the US is still exceptional and that is venture capital. And venture capital is really attracting the best people these days. They don’t go to Goldman Sachs to write algorithms. They go into venture capital or to start a new firm, and they should.”

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