Run don’t walk to CNBC’s extended interview with Jeremy Grantham, chief investment strategist at Grantham Mayo Van Otterloo (GMO).  Click here for the interview.

He begins commenting on the Fed’s attempt to stimulate growth through the  “wealth effect,” noting that academic studies estimate consumers spend 3 percent of stock wealth, which has thus added 2 percent to GDP with the rally off the lows.  He believes the S&P500 fair value is 900, but thinks there may be another 20 percent upside in stocks before the day of reckoning.   On commodities: “we’re running out of everything” and recommends  only buying commodity companies “if they have the stuff in the ground”and to “shoot” the processors.   He is one of the smartest guys out there with a comprehensive big picture view, which has proven correct on a consistent basis.  It’s well worth your time.

Click here for his recent piece, “Night of the Living Fed.”