Jeremy Grantham hurts tens of percent collapse in U.S. stock indices.
Known an American investor, one of the founders of the investment company GMO Jeremy Grantham says the U.S. stock market is in the “superbubble” of the fourth century.
Grantham has just become known for predicting market bubbles. On Thursday on the GMO website in its published text Grantham notes that U.S. stocks are in a super bubble. Similar situations have been seen in the stock market crash of 1929, the time of the IT bubble in 2000 and the outbreak of the financial crisis in 2008.
“A year ago, I wasn’t as sure about this bubble as I was about the 2000 techno bubble or the Japanese bubble [vuonna 1989] or a housing bubble in 2007, ”says Grantham Bloombergin in an interview.
“It seemed very likely, but perhaps not nearly certain. Today, I feel like it is almost certain. ”
Grantham writes that the escape from the stock market, i.e. the large-scale sale of shares, has already begun. The Wall Street Nasdaq index, for example, officially hit a correction on Wednesday as the rate fell more than 10 percent to a minus peak in November.
According to Grantham, the S&P 500 index could lose about 45 percent of its value relative to Wednesday’s closing readings and drop to 2,500. The index currently scores 4482.73. He pushes the Nasdaq index down even harder.
In the past, the US Federal Reserve has become a big bubble. This time, soaring inflation is limiting the central bank’s ability to pump up the market, according to Grantham.
“They’re going to try and it’s going to have some impact,” Grantham tells Bloomberg, but believes the impact will be small.
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