Grantham cautioned that there has "never been a great bull market that ended in this kind of bubble that did not decline by at least 50%." But he said the catalyst that triggers that drop is "much more difficult" to predict.
"It's entitled to go tomorrow if you look at all the signs … As soon as the new president gets settled in, that would be a perfectly good time for the bubble to start deflating," he said. But, assuming that the world "gets lucky" and the bubble carries on, with people getting their second vaccine doses, he said it would still hit investors at some point that the world "really hasn't changed."
"It has all the problems it had a year ago. Global trade is declining as a ratio … global growth is getting steadily slower and slower for the last few decades. And the population profile is busting – there are fewer baby cohorts … these are all very bad for growth," Grantham said.Grantham said he prefers emerging market assets over U.S. markets and also likes cash and American venture capital.
He said emerging markets are "respectably priced" compared with overpriced U.S. markets. Although emerging markets would likely fall with U.S. markets, Grantham said the crash would not be as bad because they are cheaper.
Most Americans don't have a real stake in the stock market. Assholes like this will use something most of us don't benefit from to promote denying help to working families. I guess we need a crash to neutralize this point. CRASH! CRASH! CRASH! Come tumblin' down for me, baby!
Mr bubble, put your money where ur mouth is and short it then..if you can't walk the talk then it's all bollocks what u say
Grantham is a tired old dinosaur - the old school finance/investment industry will soon be the next done in by technology. They are no longer needed.
Every year. Like Roubini. Like the broken clock that is right twice a day.....CNBC. . If they do not have a constructive narrative NEVER PUT THEM ON. All investors know that markets go up and down already! Wouldn’t it be better to have someone who teaches win both directions?
Try the September,and October 1929 market.
Not all stocks are in bubble, although, some are overvalued. Makes maneuvering this market more interesting.
Dam if you do dam if you don’t. Tom Brady’s the GOAT. Well, Joe Montana is 4-0....
Guy has been crying wolf since the summer. Should retire. Old guys been wrong for a year.
buy asset whatever the value is because the $ is a toilet paper soon.
Tesla has exploding cars in China, 100% made in China cars, and a PE of 1700. The word bubble doesn't apply to this mess. It's gonna explode like a neutron bomb
I'm afraid she'll be right.
give it rest Jem.
Free enterprise exchange or free commodity order
PeterMallouk I assume one has to be a smart investor with diversified portfolio and invest for the long run.
You can read this article to see if it changes your mind about a bubble. For every time investors try to time the market or predict a bubble they have already missed lots of predictions.
In 2020 the Federal Reserve infused WallStreet with $11 trillion, so why shouldn’t investors be euphoric? The Fed can’t stop the infusion. Congress has no control over it, thanks to Dodd-Frank. Reading the markets as they were prior to Dodd-Frank is likely anachronistic.
I don´t think the whole market is in a bubble. Some sectors appear to be in a bubble but this year has also been a year of great returns. Tech accounts for approximately 40% of S&P earnings and it weighs 40% of the index with some companies still growing at double digits.
has happen in spain yesterday, synchronously with the byden election. as Ctrl Alt Delhi ? Start with a story eh.
Ridiculous analysis. The US market is not driven by Bitcoin or SPACs. Valuations for the biggest market drivers are not overwhelmingly high given growth rates. And lots of good value opportunities in cyclicals, staples, and financials.
He has no clue that ItsDifferentThisTime
I expect that a crash is on the horizon. The valuations for some publicly traded companies are insane; completely detached from reality/fundamentals. Hold onto your asses.