OK, it’s time to talk about bubbles. Investor Jeremy Grantham of GMO fame has called a few bubbles over his stellar career. He sees three today: Bonds, stocks, and real estate. Your Survival Guy, not famous at all, fought through the live-fire of managing client money during two brutal bubbles already in this young century. It wasn’t easy, but we got through it. That’s what I see today. Knowing how to survive the worst of times is an acquired skill, and I’ve seen my share of it.
When I think about a real estate bubble, I think about you. What can you do today or in the next few years to ease the pressure in your real estate world? How about paying off your mortgage? That’s where I’d start. Then I’d think long and hard about moving to a low tax frontier where you’re not the game being hunted.
Grantham believes even value stocks are overvalued. Not compared to the nosebleed prices for the big growth names we all know. And not compared to the crazy meme stocks.
Action Line: Bonds will always play a role. It’s just a matter of fitting them into the proper mix for you. Bubble or not, I’m here to help. I’ll never desert you, especially when things get sticky.
Originally posted on Your Survival Guy.