Unless you follow financial news you may have missed Jeremy Grantham’s latest viewpoint white paper. Grantham is highly respected in the financial world and his latest “warning” certainly caught the eyes of financial media. His warning is two fold. He things a “melt up” in the market may occur followed by a large “melt down”. He backs up his thesis very well. One of the things we have harped on when discussing bubbles with clients is there typically needs to be a period of euphoria before even considering something a bubble (see crypto currencies for example). Since this bull market has been met with so much skepticism the euphoric period has remained elusive. I have mentioned some anecdotal evidence of euphoric tendencies so maybe Grantham has a point. Could the “melt up” be 30%? 50% Who knows. One of the keys to making it through the next downturn, however, is to enjoy the gains leading up to it.