The Big Picture for the Week of Jul 15, 2012

From Jeremy Grantham in Barron's European Trader Column:

GMO CHIEF INVESTMENT STRATEGIST Jeremy Grantham last week dispensed advice at ReSource 2012, a forum on global-resource issues at England's Oxford University. Grantham, who with his wife founded the Grantham Foundation for the Protection of the Environment, recommended long-term investors allocate about 30% of their portfolios to resources and resource-efficiency strategies. His foundation puts 15% of its investment into forestry and farmland, 10% into resources "in the ground," and 5% into efficiency plays. "Even more important, though, is to recognize the vulnerability of all the other traditional investments" and the impact of resource shortages on growth rates and profit margins, says Grantham, who shied away from specifics.