Jeremy Grantham Grantham, a legendary investor and co-founder of GMO, a Boston investment firm, once again warned that US stocks were in the midst of the biggest bubble ever, crazier than the Great Depression of 1929 and the dotcom bubble of 2000.
Grantham, 83, was known on Wall Street for accurately predicting three major market bubbles and was hailed as a "bubble prophet". Three years before the bursting of Japan's asset bubble in 1989, he had cleared Japanese assets and decisively left the market. On the eve of the dotcom bubble in 2000 and the financial crisis in 2008, he warned that the market was about to peak.
In July, Grantham warned that the longest bull market in history was coming to an end and was wary of the bursting of multi-asset bubbles.
Grantham has always stressed that in an era of fanaticism full of MEE shares and cryptocurrencies, most people tend to ignore risks and focus on interests, but this unprecedented frenzy could trigger the worst stock market crash on record. this danger is imminent and growing.
He said the current stock market bubble was artificially driven by US government policies that led many investors to believe that the boom could justify overvalued assets, but that the economy was not actually "booming" because there was no real growth in production.
"this is the first time we have had bubbles in so many different areas, interest rates, equities, real estate, non-energy commodities. These bubbles are real. Soon investors will have to face a market that is beginning to change rapidly. "
Financial and economic expert Alasdair Macleod made a similar prediction. He believes that the biggest catalyst for the impending collapse of inflation is the US government's policies that recklessly expand the money supply, lower living standards and allow Americans to fight runaway inflation.
The Alasdair Macleod warned that an unprecedented financial disaster seemed only a matter of time, with so much debt and so little flexibility that the US over-leveraged financial system was doomed to liquidation and that market conditions were becoming increasingly unsustainable "to the point where we can't go any further".