GMO's Jeremy Grantham's Q3 Letter: The Shortest Quarterly Letter Ever

I've been wondering when the latest Grantham letter would be out, and it has just hit the interwebs, titled:

The Shortest Quarterly Letter Ever

. For Grantham it is indeed a fraction of his normal self - a mere 4 pages.

Some excerpts pulled out

(without the terrorizing headline) ;)

Avoid lower quality U.S. stocks but otherwise have a near normal weight in global equities.
Tilt, where possible, to safety.
Try to avoid duration risk in bonds. For the long term they are desperately unattractive. Don't be too proud (or short-term greedy) to have substantial cash reserves. Admittedly, this is the point where we at GMO try to be clever and do a little better than the minus 1% real from real cash – and, so far, with decent success.
I like (personally) resources in the ground on a 10-year horizon, but I am nibbling in very slowly because, as per my Quarterly Letter on resources in April 2011, I fear a major short-term decline in commodities based on a combination of less bad weather – which has been bad, but indeed less bad – and economic weakness, especially in China. Prices have declined, often quite substantially, since that letter. However, I believe chances for further price declines in resources are still better than 50/50 as China and the world slow down for a while, and the weather becomes a bit more stable.

Full read here - as always hit fullscreen for the easy read

Some older letters:

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