Grantham says it is best to be in cash because both stocks and bonds are overpriced

Jeremy Grantham is preaching what we having been saying for a long time, that is, both stocks and bonds are overpriced, especially bonds. 

Inflation, which is coming, will reduce the value of both and they will both fall. 

It's better to be in cash and commodities, such as oil and copper in the long term.  Via CNBC:
"It [the Federal Reserve] wants us to go out there and buy stocks, which are overpriced because bonds they have manipulated into being even less attractive," said Grantham, who is chief investment strategist of Grantham Mayo Van Otterloo, a Boston-based asset management firm, and a respected voice in the financial world.

"So, we’re being forced to choose between two overpriced assets. That is not always a terrific choice to make because there is a third choice, and that is, 'don't play the game and hold money in cash.'  
"And cash has what people don't appreciate fully. And that is its 'optionality.' In other words, if anything crashes and burns in value—say the U.S. stock market—if you have no resources, it doesn't help you. If the bond market crashes, and you have no resources, it doesn't help you. And what cash is is an available resource. It buys you the right to buy the U.S. market if the S&P drops from 1,220 today to 900, which is what we think is fair value."

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