Legendary Investor Warns US Stocks Are Reaching Dangerous Levels, Sounds Alarm On 'Super Bubble'—Is A Market Correction Coming? Long-term investment strategist and co-founder of GMO Investment and Asset Management, Jeremy Grantham, issued a warning about a potential “super bubble” in the U.S. stock market. What Happened: During an episode of Bloomberg’s Merryn Talks Money on Friday, Jeremy Grantham cautioned about the existence of a “super bubble” in the U.S. stock market. While he does not believe the current bubble is as severe as Japan’s 1989 bubble or the real estate bubble of the same period, he still sees it as a significant risk. Grantham noted that all traditional stock valuation metrics, including the cyclically adjusted price-to-earnings ratio, have reached record highs. He also voiced concerns about the bubble surrounding AI, a major market driver. “If the government does not smooth out the benefits of AI, you will have either starvation or revolution,” Grantham warned. <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> </figure> Grantham proposed investing in sectors aimed at “greening the economy,” noting that it’s a currently undervalued market sector with a potential for significant regrouping and outperformance. He also cautioned against leverage, highlighting the importance of businesses maintaining minimal or no debt to withstand unexpected shocks. Speaking about non-U.S. markets, Grantham stated that they are “much less dangerous to own and will very likely over five or 10 years crush the U.S. market as has happened several times.” Granthan cautioned against cryptocurrencies calling them “a wonderful speculative medium." He also spoke about being uncomfortable with gold as it doesn’t provide dividends. However, he prefers them over Bitcoin (CRYPTO: BTC). _______________________________________ He doesn't like stocks, gold, or Bitcoin. If he's right, we ARE in big trouble. I wonder what his opinion is on ammo?
Big deal. Are stocks going up, down, or staying flat? Making sure your positions align with what is happening in the market is a lot more important than any prognostication no matter how brilliant the source.
Good Morning vztrdr, Long and Strong SP 500 Index. I will buy some more. Thank you very much for the buy more US stocks STRONG buy signal.
i think all these anti trumpers should short the market going into this weekend cause you never know what kinda greatness is going to happen over the weekend at south capital la margo.
I have a feeling this time, instead of just TSLA stock, the entire market is gonna do my TSLA dance. "The higher it goes, the higher it goes." What people don't realize is he invented a time machine in 2110 and he's come back to save us all.
Grantham has to be the worst prognosticator of the markets I've ever seen. Is there a bigger perma-bear than this guy? [Precter was a disaster as well.]