Brace for 50% market crash, recession as 'everything bubble' bursts: Grantham

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Brace for the S&P 500 to plunge 50% and a painful recession to strike as the 'everything bubble' bursts, elite investor Jeremy Grantham warns

"It's bad enough just doing the equity market in 2000," he said."This time, we have done a dead ringer for the equity market, plus the gravy, we've done the housing market and the bond market."

"Be advised this is not a genteel setback like 2000," Grantham continued, predicting a bear market could persist until deep into next year. He noted the dot-com crash only caused a mild recession, but even so, the Nasdaq index plummeted 82% and the S&P 500 halved in value during that period.predicted that if the US gets lucky, the S&P 500 might slump by around 24% to roughly 3,000 points.

The veteran investor predicted rising unemployment, slowing growth, and slimmer corporate profit margins from May onward. But he emphasized that economic fundamentals can deteriorate for years before they finally bottom out. Grantham also offered some advice to investors on how to weather the coming storm. He cautioned against short-term wagers on US stocks, touted emerging markets as relatively cheap, and recommended betting on long-term trends such as climate change and resource shortages.

"If you want to have US equities because you have to, then for heaven's sake, play the long game and do resources and climate change, and pretty well stay away from everything else," he said.

 

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If this transpires, I will be buying the dip.

Other than that, how was the play, Mrs Lincoln ?

how does anyone still value Grantham's broken clock analysis?

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