Jeremy Grantham, co-founder of money manager GMO, has made a name for himself with his bearishness on the U.S. stock market during the past 15 years.

He maintains his negative outlook on U.S. equities – and bonds as well. But he is bullish on stocks in emerging markets, Europe, and Japan. Grantham is also optimistic about natural resources, he tells Morningstar.

"Just on a pure value basis, European [stocks] look very cheap, even without financials included. Emerging [markets look] cheap. Japan is cheaper than its long-term average,” he says.

“By mixing and matching those areas, you can get a real return of 7 percent, which is not bad."

And sometimes you have to settle for not bad, Grantham says.

"If you can handle it, the advantage is that those big bets that have the greatest career risks are of the highest value. If you're successful with those over your career, you will have the greatest success."

As for commodities, "I believe we're running out of resources," he says. "I think the trend is up. This is the biggest change in the long-term business outlook I've seen in many, many decades."

Other investors are turning bullish on commodities as well, thanks to the Federal Reserve’s continuing policy easing.

Money managers increased their long commodity positions in 18 U.S. futures and options contracts by 9.1 percent in the week ended June 12, rebounding from the lowest level this year, Bloomberg reports.