Bull Market or Bear Trap Jude Wanniski November 4, 2003

If you read Barron’s this week, you may have come across this interview of Jeremy Grantham whose Boston firm runs $48 billion and has a well-deserved reputation for sound management. A client called our attention to the interview and asked for our thoughts on Grantham’s basic theme that we are now experiencing a bear-market rally, with “A Sucker Punch Coming.” We decided to do more than comment, going through the interview word-by-word, to make it clear why we believe this is a genuine bull market and why it will continue until unforeseeable political events intervene. As you will see, Grantham himself is not expecting a break in the market in the near term but sees one coming sometime in 2004. Our comments are in the underlined passages.