Jeremy Grantham, chairman of institutional money manager GMO LLC, sees the tug-of-war between bulls and bears continuing over the next year.
"I expect the market will fight against going down, and keep on fighting," said Grantham, who oversees the investment strategies of the Boston-based firm.
Grantham predicts the bears will gain the upper hand after next year's presidential election. "Corporate profits are up but margins are down," Grantham said. "If they continue to fall, the market can go down a lot."
How much? Grantham says the S&P 500 could lose 40% between late 2008 and the end of 2010....More from Marketwatch Aug. 12, 2007