Legendary prophet warns of global asset bubble! The end may be “just around the corner”, having accurately predicted the economic crisis several times

Jeremy Grantham, the founder and chief investment strategist of GMO Asset Management, who has accurately predicted many economic crises in the past, including the Japanese asset bubble in the late 1980s, the dot-com bubble in 2000, and the subprime crisis in 2008, is once again talking about the current global asset bubble. He believes that this time is very different from the bubbles experienced in the past, the previous bubbles appeared when the economy seemed to be perfect, but this time began to rise when the economy was hit hard!

Grantham has warned in January this year, U.S. stocks have been in an “epic bubble”, once burst, the tragic degree of fear equal to the 1929 Wall Street crash, or with the burst of the 2000 dot-com bubble comparable. He recently warned again, the end may be “in sight”, people are afraid to experience the most severe perceived value of assets (Perceived Value) loss ever seen.

He was quoted in the foreign media as pointing out that before the bubble bursts, the crazy behavior in the market will increase significantly, “the problem with the bubble is that if there is more money, more crazy investors, the bubble can continue”. He saw “extreme stock overvaluation, price spikes, crazy debt issuance, and hysterical speculation” in the fourth quarter of last year, and these speculative winds intensified even more dramatically in the first quarter, including the special purpose acquisition company (SPAC) mania, the Gamestop mania, and the recent insane rise in dog coins.

He said today’s market frenzy reminds him of the 2000 tech bubble, and that signs of the current bubble bursting have been seen in the SPAC market, where oversupply, regulatory scrutiny and other factors have caused the IPOX SPAC index, which tracks SPAC performance, to slump 23% from its February high.

He points to the plunge in Tesla’s stock price as another sign that the market mania has subsided. The current situation is as scary as it was in 2000. He believes that the combination of today’s massive fiscal stimulus package and effective vaccination against Neoconiosis (the Chinese communist virus) may drive the bubble to last longer, but he doesn’t think it will change the end of asset prices returning to more reasonable levels and investors entering a more pessimistic phase, which means the higher you climb, the more painful the fall will be. In addition to stocks, bonds, and real estate all being too expensive, and commodity price spikes flashing warning signs, it’s safe to say that signs of asset price bubbles are rapidly emerging around the world.