Jeremy Grantham: The Greatest Stock Market Bubble In Financial History Is About To Burst

Amid one of the craziest bull runs in stock markets in all of our history, calling out a bubble can be quite scary for many investors, but not for Jeremy Grantham. In a frenetic era of meme stocks, cryptocurrencies, and bidding wars, most people tend to overlook the risks and focus on the promise of future gains. However, there is an imminent and growing danger that this unprecedented mania might end up triggering the greatest stock market crash ever recorded. That's what the chairman of the board of famed asset managers GMO has been warning, stressing that we're in the middle of the greatest financial bubble ever seen. Grantham, an experienced investor who spent decades analyzing how bubbles are formed, has lived through and called numerous modern booms and bursts, including the dot-com crash in 2000, the market peak in 2008, and the market collapse of 2009. Now, he says that we're headed to a similar fate.
To identify a bubble, it doesn't take much, he argues. You can see something is terminally wrong in the market when it makes the front pages instead of the financial pages when the news is full of stories of people getting cheated when new coins are being created every month. "The scale of these things is so much bigger than in 1929 or 2000," he stresses. The current stock market bubble has been fueled by artificial government policies that led many investors to believe overvalued assets could be justified by a booming economy. But as Grantham highlights, the economy isn't actually booming because there was no real growth in production, and very soon investors will have to confront that reality. And when they do, things will start to rapidly change in the market, leading this bubble to an epic burst.
Grantham believes that the next stock market crash will cause an enormous negative wealth effect, bigger than it has ever been, compared to any other previous bubble burst. "It's the first time we have bubbled in so many different areas – interest rates, stocks, housing, non-energy commodities. On the way up, it gave us all a positive wealth effect, and on the way down it will retract, painfully," he warns. "This bubble is the real thing, and everyone can see it. It's as obvious as the nose on your face. Today, it is clear to me that this is the most dangerous package of overpriced assets we have ever seen in the US,” says Jim Grant, describing that we have the most overpriced fixed-income market in the history of the world.
At this point, bubbles are emerging everywhere. Housing, equity, bonds, stocks, crypto. If they simultaneously crash, as most economists predict they will, this will undoubtedly be the sharpest collective loss of wealth ever recorded. That's why, Grantham is sounding the alarm to the greatest bubble in financial history, warning investors that history is about to repeat itself, and this time, the stage is set for an apocalyptic financial meltdown.
Sharing a similarly dire forecast, finance, and economic expert, Alasdair Macleod, affirms that one of the biggest catalysts to the coming inflationary collapse were government policies that recklessly expanded our money supply, downgraded our living standards, our currency, and left Americans struggling with runaway inflation in that process.
The expert emphasizes that “this has gotten to a point where we can’t go any further. We are at the top of the bubble. What happens when this market tops out? The dollar goes down with it”. Macleod adds to the predictions that the everything bubble burst is fast approaching: “Look at the fundamentals in the economy. They are talking about economic recovery, but look at all the shops that are closed and never to be reopened. This is not a healthy economy. This is a very bad economy. The reason why prices are rising is you’ve got all this money being put into the consumers’ hands. This is the middle class here, and they are spending this money, and where is the production to satisfy the spending? It’s not there, it’s closed down. There is no solution. We are getting to the point that there is actually no exit from this mess,” he warned. A financial disaster of unprecedented proportions seems just a matter of time. With so much debt, and so little resilience, our over-leveraged financial system is doomed to face a reckoning and everyone that have seen this happening before is telling us right now that conditions in the markets are increasingly unsustainable. Those who have chosen to ignore the dark clouds that rising on the horizon will soon find themselves amidst the most devastating financial catastrophe of our lifetime.

[monkeybeko]

Reading about people grabbing multi-figures monthly as income in investments even in this crazy market, any tips and pointers on how to make substantial progress in earning? would be appreciated

[mervyncalder]

if you say the crash is coming every week for years eventually you'll be right lol

[huggiesmelina]

Everybody has been talking about the market crash, but nobody is really telling us where to put our money right now that we can invest and make money either before the crash, during the cras h and after the crash I think that’s the most valuable information right now.

[aakkii]

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[stormclair]

I will forever appreciate this channel, you've helped my family alot, your videos, advice, lessons and funny words are inspirational and helpful to us. My husband and I have been able to be minimal, conscious in spending, saving and investing wisely, I now earn every week. You're such a blessing to this generation. we all love you😘😘

[MillionaireMindsetClub]

Hope whoever is reading this accomplishes financial FREEDOM, wealth, and is blessed with true happiness!

[VictaCheung]

If everyone says a crash is coming, we are going higher..

[deltab]

I have been watching these videos for over 5 years and there has never been a crash when you predicted. I'm starting to think this is a scare channel

[plusorminusandtime]

I think it is time for all of congress to earn the federal minimum wage with no benefits. No one should go to congress just to get rich.

[shiningsoul]

Since 2018, Everyday, I come here to get my dose of "the crash is coming", thanks a lot epic economist 👍👍👍

[steveguti]

Jesus Christ died for our sins according to the scriptures and that he was buried and that he rose again the third day praying for everyone everyday God bless you all 🙏

[wildesposorio]

I lost respect at 0:23 when they show Bitcoin trading at 8k. Makes me wonder what other research of yours is outdated

[wallacefelix]

rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich

[carlyfredrick]

The Greatest Stock Market Bubble In Financial History Is About To Burst;
I find it hard to understand why people are almost wishing for a crash. considering all the hype about a huge market crash that surrounded the early days of the pandemic and the state of the market now

[rachel]

I’ve heard financial collapse scare before, but this time things just look and feel very different. I think difficult times are coming very quickly.

[mrcheesesmith]

I have been watching this channel for about 3 years now, I honestly can't believe that the bubble has not burst yet. The global economy is on life support, it's not going to hold out much longer.

[barrygaynor]

Well we didn't learn from the stock market crash of 1929 and the Great Depression which followed; we've allowed the lobbyists to run the country, in exchange for "campaign contributions" and fundraiser dinner fees; and we've allowed mismanagement and irresponsible fiscal policies to go on for decades--shuold we be surprised if the country's economy fails?

[AhayahTruth]

As a Christian, you forgive, and you feed the hungry and clothe the naked, and you visit the sick and comfort the lonely. If I'm a true follower of my lord and saviour Jesus Christ, I got to do the things you're supposed to be doing. ✝️🤝😇
~Mr. T

[clauswolfgangmeyer]

Money is NOTHING! JUST A PRINTED ILLUSION many believe in!

[jasonlamar]

I earn massively since I started trading with Flourish Joe