GMO’s Jeremy Grantham on Climate Change and Investable Ideas – BloombergBusinessweek 08-08-13

Salient to Investors:

Jeremy Grantham said:

  • The biggest issue we face is deterioration of the environment, particularly climate damage. In the US, the biggest problem is coal and tar sands.
  • If we burn half or more of the coal and tar sands in two areas in North America, there is no chance of avoiding very dire consequences: rising water levels displacing hundreds of millions of people globally, destabilizing global politics, acidification of the water almost certainly destroying most of the coral reefs, and possibly threatening the bottom of the food chain in the ocean.
  • In the investment business, our No. 1 job is not managing money but keeping our job, which is why short-term momentum investing dominates. Scientists do the same and make sure they’re conservative.
  • Young people are not flocking quite so enthusiastically to the financial world. They haven’t responded to climate change despite it happening so fast that this is their lives, not their children’s.
  • The only investable idea I have confidence in is farming and forestry.
  • Holistic is the world’s most pretentious word.
  • We have been manipulated to see ourselves in a world where only debt matters, only finance matters, only banking matters and therefore we have to be protective of the big banks.
  • The US will prosper by the quality and quantity of our labor and capital. How the Fed twitches around has no material effect.
  • I try not to miss the big ideas and forget the little ones.

Read the full article at  http://www.businessinsider.com/jeremy-grantham-on-the-fed-2013-8

Click here to receive free and immediate email alerts of the latest forecasts.