Grantham: Stock market bubble crash only halfway over when Fed cuts rates

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The stock market's bubble bust will only be halfway over when the Fed starts cutting rates - and there will be much more pain ahead, legendary investor Jeremy Grantham says

Though some investors are looking for signs of the, that's the wrong way to think about stocks in the current environment, Grantham said."Great Bubbles" in the stock market are different from typical bull and bear markets, meaning it's likely there's another round of pain ahead.

"Most of the decline in these great bear markets only happens after the first interest rate cut. So you tell me when the first interest rate cut is, and I will tell you when the second half of the pain is going to start," Grantham said in an interview withInvestors have already seen hefty losses over the last year amid rising inflation and higher interest rates, which have taken away the liquidity that previously caused asset prices to soar.

Fed Chair Jerome Powell has said rates will stay elevated through the rest of this year, which is expected to hinder stock performance. But markets are pricing in a 33% chance of a 25 basis-point rate cut as soon as July, according to the

 

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Economy seems to be strong and money is distributed . Only super richs are lossing money or not able to generate required growth as they used to do .

This is how these big economist make money . Last few quarter they have piled up cash now creating panic so that retail investor start selling and these big people can buy on cheep rate .

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