10 views on the market from Jeremy Grantham
Lower GDP will shift preferences within sectors
Mr. Grantham points to growth stocks as seeming relatively more attractive with lower GDP — the argument being that if the economy isn’t growing, investors might want to at least pick companies that are growing. “Perhaps quality franchises would also become more appealing with the logic being that at least in the transition to lower top-line revenue growth, competition would become more severe and, hence, defensive moats even more than usually desirable,” Mr. Grantham adds.
Source: GMO's 4Q letter