Over the years, Grantham's words have been more bearish than his actions. After all, if he had entirely avoided stocks over the past decade, he probably would have been left with few assets to invest now that's he's turned bullish. Instead, GMO uses Grantham's forecasts to decide when to underweight or overweight stocks and other securities.

What is he buying now? Grantham's favorite stocks are high-quality U.S. and foreign blue chips. He's also turned bullish on emerging-markets stocks -- they have been pummeled even worse than U.S. stocks during the bear market.

Grantham is negative on stocks of small U.S. companies and real estate investment trusts.

For investing in high-quality stocks through a mutual fund, Vanguard Primecap Core (symbol VPCCX) is my favorite choice. Marsico Growth (MGRIX) is another good pick.

For foreign stocks, look to Artio International Equity II A (JETAX) (formerly a Julius Baer fund). And for emerging markets, try T. Rowe Price Emerging Markets Stock (PRMSX).

All of these funds have suffered mightily in the bear market. But then again, so has everything else.