2027 is the year.. The quote you're referring to from Jeremy Grantham's most recent book (published in January 2026), *The Making of a Permabear: The Perils of Long-term Investing in a Short-term World* (co-authored with Edward Chancellor), appears to discuss or reference the long-standing "presidential cycle" pattern in markets. Grantham has frequently written and spoken about this over the years in his GMO quarterly letters and viewpoints, describing how U.S. presidents (with Fed assistance) tend to apply extra economic stimulus in the lead-up to midterm elections—specifically ramping up in the latter part of year 2 and into year 3 of the term—to boost growth and voter sentiment. The core idea is that this creates a "stimulative" period, particularly benefiting stocks more than the broader economy. In his January 2023 GMO viewpoint "After a Timeout, Back to the Meat Grinder!", he explained it this way (which aligns with his recurring commentary likely echoed or updated in the book): > "So, on or around the 4th quarter of year 2 – this cycle, 2022 – they start some extra stimulus. I say 'extra' because there are always other considerations at work. [...] Thus, to get a modest, but politically important, twitch in labor numbers, we see for the stock market the remarkable data [...] in which since 1932 the 7-month stimulus window delivers six times the monthly returns of the rest of the cycle." He notes the "stimulus window" covers from October 1 of the second year through April 30 of the third year, where historical S&P 500 returns concentrate heavily (equal to the other 41 months combined in that span since 1932). In earlier pieces (e.g., 2016 interviews), he described the cycle as involving "stimulating the economy in the third year of the term, so that the economic benefits would be feeding through as voters went to the polls" for midterms. His newer book focuses on his career, value investing philosophy, bubbles, and "permabear" reputation, so any specific quote on this likely recaps or contextualizes this historical pattern rather than introducing it as brand new. No exact verbatim book excerpt matching "president's 3rd year in a term being a stimulative year" shows up in public sources or reviews, but the concept ties directly to his long-discussed presidential cycle thesis, where year 3 is the prime beneficiary of that pre-election economic/political stimulus. If you have a page number or more context from the book, that could help narrow it further! Grantham has been bearish overall lately, but he acknowledges this cycle as one of the few reliable short-term positives in an otherwise overvalued market environment.