Stock-market legend sees few weeks of ‘putting your last, desperate chips into the game’—then pop

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Storied investor Jeremy Grantham offers up a stark warning to speculators driving the stock market to new heights.

“ ‘We will have a few weeks of extra money and a few weeks of putting your last, desperate chips into the game, and then an even more spectacular bust…When you have reached this level of obvious super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years. ”

In an interview with Bloomberg TV’s “Front Row,” the storied investor, who is often credited with several prescient market calls over the past two decades, insists that a steady rise in stocks, fostered by free money from the Federal Reserve and the government’s fiscal stimulus, can’t continue without consequences.

This is far from the first word of caution that Grantham has sounded in recent weeks but he’s now pointing to the $1.9 trillion coronavirus relief package proposed by newly inaugurated U.S. President Joe Biden as further reason for an eventual bursting of the bubble. However, GMO badly trailed the S&P 500 index SPX, -0.30% in 2020, according to a report by Bloomberg News on Tuesday.

 

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Always good to do a credibility check. The S&P was around 2000+ then. Now 3800+. Funny how perma bear zombie dinosaurs get propped up and presented as being credible.

Permabear prognosticator for the past decade. Nothing to see here.

His REAL ADVICE 'Nobody is allowed to make money, but the SUITS! Get out of our market retail bros! You are showing us up !' Piss off

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