https://markets.businessinsider.com/news/stocks/jeremy-grantham-stock-market-bubble-fed-horror-show-interest-rates-2023-3Business News
Veteran investor Jeremy Grantham says the stock bubble is still deflating and the market will go down in 2024 amid a ‘horror show’ from the Fed.
by Alma Winkle March 10, 2023
Veteran investor Jeremy Grantham says the stock bubble is still deflating and the market will go down in 2024 amid a ‘horror show’ from the Fed.
Jeremy Grantham said that the stock bubble is still in the process of deflating and the market will not bottom out until 2024.
The veteran investor blasted the Fed’s monetary policy as a 36-year-long “horror show.”
He predicted mild pain for investors in the coming year, while warning of a downturn in equities around April.
The stock market bubble is still in the process of deflating, according to veteran investor Jeremy Grantham, and equities will finally bottom out in late 2024 amid the Federal Reserve’s “horror show” of monetary policy.
In a recent interview on Bloomberg’s What Goes Up podcast, the GMO co-founder reiterated his view that stocks were in a speculative bubble and about to pop, thanks to the end of ultra-low interest rates and ample liquidity in the market. Thanks for those who brought the stock. For circling high during the pandemic.
Grantham also blasted the Fed’s monetary policy in the years since former Alan Greenspan took over as central bank chairman in 1987, calling its effects on the US economy a 36-year-long “horror show”, which has recently Helped build immense wealth over the years. ,
No end in sights until 2024, maybe 17% more downturn
so much pain ahead...
Comments
I haven’t listened to it.
giggle.
Statements like that tell you nothing. Which stocks? Where on the planet? A lot of time the general term “stocks” is applied to the U.S. S&P 500 Index. I’d have no problem believing Grantham (or at least giving the statement some credence) if that’s what he’s referencing.
“Pop” Great financial term.
Relatedly --- hey look, it's 1230PM ... again!
That said, I'm not sure how anyone can say with absolute confidence that "over the next 35 years an S&P index fund should do just fine." That assumes market, economic and political history just repeats. I wonder if someone asked you, "Do you think over the next 35 years the U.S. will remain the dominant global economic superpower?" if your answer would be as confident. And the two questions regarding future market performance and national performance are connected.
To your later remark - I actually considered attaching a proviso to the S&P remark along the lines of what you mention. Will we be a democracy in 35 years? Will workers still have the means to invest in the S&P or anything else? Will the atmosphere be fit to breath?