Reinvesting When Terrified

'Reinvesting When Terrified' is the title of a column written by Jeremy Grantham in March 2009. This column is full of most interesting ideas and certainly worth finding…especially if you are thinking you'd like to buy a stock. “you absolutely must have a battle plan for reinvestment and stick to it”, Jeremy Grantham says. Grantham's article is one page long…a PDF file. Here are Grantham's last two sentences: “Finally, be aware that the market does not turn when it sees light at the end of the tunnel. It turns when all looks black, but just a subtle shade less black than the day before.”

Jeremy Grantham was the one who, over the last few years when stock prices were rising madly (Connolly Report p.544 Dec '03), said it was the greatest sucker rally in history. Grantham was correct, of course. The annual return on the S&P 500 over the last ten years to February 28 2009 was minus 5.1%. The TSX over the same period: 2.6%. Talk about a lost decade! I found Grantham's article at

http://www.investmentpostcards.com/wp-content/uploads/2009/03/reinvesting-when-terrified.pdf