``Mr Grantham -- the cofounder and chief investment strategist at the $US112 billion ($123 billion) Boston-based fund manager GMO --said he wouldn't invest his clients' money in US stocks for at least the next seven years because of the Fed's ''misguided policies''. Mr Grantham has an impeccable track record, having called both the internet bubble and then the US housing bubble. In November he said he believed the US sharemarket could rise another 30 per cent, although he believed it was overvalued, before crashing again.''


''Over the next seven years we think the market will have negative returns. The next bust will be unlike any other because the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets. We have never had this before.

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