Stock market: a famous investor warns of the imminent explosion of a “super bubble”
After the three financial “super bubbles” that followed the stock market crashes of 1929, 1973 and 2000, soon that of 2022 or 2023? This is announced by the famous British investor and co-founder of the asset management company GMO (Grantham, Mayo & van Otterloo), Jeremy Grantham, reports the site The Byte – Futurism, Thursday, September 1. An alarmist message that the eminent expert sent to investors.
“The super bubble presents an unprecedented, dangerous mix” of overvalued assets, he warned, noting that stocks, bonds and housing are all “overvalued” and “losing momentum rapidly”. “Each cycle is different and unique,” he continued, “but every historical parallel suggests that the worst is yet to come.”
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“What’s next isn’t going to be pretty”
According to him, the previous three “super bubbles” were all characterized by a sense of panic over low stock values and then a wave of “crazy investor behavior”. Or, for Jeremy Grantham, such a pattern is visible today after this summer’s regression. The most significant indicator would be the “explosion of confidence and speculation and mad wishful thinking” among investors despite rising inflation and regression.
“What’s next isn’t going to be pretty. There’s now a much higher likelihood of other unexpected financial and economic crashes, as we’ve seen previously during and after stock market crashes, increased financial insecurity and food, resource struggles and continued inflation,” he said.
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