My thoughts after watching Bloomberg's interview with Grantham.
1. He is very thoughtful, straight-forward and managed to summarize what is the market right now.
2. His quote of "High growth stocks is valued higher and normally is based on DCF model or anticipated dividend in future. However, high growth stocks can be overvalued. And if it's overvalued, it's overvalued anyway."
3. He rightly summarizes that "P/B is low because it's sitting on poor quality asset, Dividend Yield is high because it's waiting for a dividend cuts, P/E is low because of poor future earnings visibility".
4. He sees that currently lower growth stocks might overperform the high growth stocks not because of high growth stocks is not growing but it's being overvalued at current prices. Lower growth stocks is trading at way cheaper valuations and has the potential to rise in terms of valuation more (in percentage) than overvalued high growth stocks.
I would encourage you to watch the interview as it offers different viewpoints and watch how Jeremy Grantham argues his points. I find it very impressive and downright truthful.
