Fundsters wondering about the overall fate of the economy may want to take a look at an article in Wednesday's Wall Street Journal. Hailed as "the investment guru" in the Wednesday "Fund Track" column, GMO Funds' chief investment strategist and former chairman Jeremy Grantham thinks that U.S. stocks are quickly heading into another bear market.

"Once again, the Fed is playing with fire," Grantham wrote in his quarterly letter to clients.

Grantham believes that the stimulus policies that boosted the economy, like low interest rates and "easy money," are now inflating the next financial bubble. On top of that, high stock prices are projecting a false picture of market stability, giving investors too much confidence, especially after 2009's market rally.

Although "they" say that past performance is not an indicator of future results, Grantham's recent track record makes him a hard voice to ignore. According to The Journal, he warned of dangerously high stock prices in 2007, and then urged investors to buy in March 2009, predicting the spring rally.

Grantham and GMO, expecting low returns in the next demi-decade, are sticking to their bearish strategy and trimming down on equity. 

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