Grantham: S&P 500 is still 20% overvalued

GMO's Jeremy Grantham has said the S&P 500 is still heavily overvalued, and "worth no more than 950".

"My worst fears about the potential loss of confidence in our leaders, institutions and capitalism itself are being realised", Grantham said in his quarterly letter to investors. The GMO chief investment officer said it is quite likely the market will renew its fight to stay up for a few more months following the precipitous falls seen since the start of August. He added he is glad to have cut back on risk-taking and is "very glad to see quality working". Grantham said GMO continues to overweight quality stocks, not least those in emerging markets, and suggested Japan could yet be hom...