"Bubble Hunter" Grantham Issues New Warning: US Stock "Super Bubble" Ranks Third in History

Jeremy Grantham, the legendary market strategist, recently warned that the US stock market is currently in a "super bubble" that is the third largest in history, behind only the Japanese bubble of 1989 and the real estate bubble of the same period.

Grantham, in an interview, made it clear: "I've always thought that the longer, the larger, the higher the bubble, the more exciting and the more dangerous it is, and now the US stock market has reached the level of a super bubble." However, he also pointed out that the current US stock bubble is still lagging behind the Japanese bubble of 1989 and the real estate bubble of the same period.

In fact, this is not the first time Grantham, co-founder of GMO, has predicted the collapse of the US stock market. He warned investors to avoid US stocks in 2024 and predicted a 50% decline in 2023, but the S&P 500 index rose more than 23% in both years.

Despite this, Grantham still has many followers due to his successful prediction of the 2008 real estate market collapse and the internet bubble.

Grantham also mentioned that the valuations of technology, artificial intelligence, and AI-related stocks are already too high. He said that investing in the "green economy" would make him feel more comfortable, but he would not specify the assets.

Grantham believes that the future of the "green economy" "will be long and challenging," but he emphasizes that it is necessary to prevent the failure of civilization.