Jeremy Grantham, the founder of GMO Asset Management, an internationally renowned contrarian investor who has accurately predicted the past two mega-crises and has been hailed as a “legendary disaster prophet” by the media, has once again warned that Wall Street is in a bubble and retail investors are intoxicated by it.
Jeremy Grantham pointed out that in recent months, the stock market’s frenzy and soaring U.S. stocks are turning into an “epic bubble”, with retail investors becoming ecstatic and borrowing money to trade more stocks. He also warned that the bull market has always ended with the bubble bursting and falling by at least 50%, but the catalyst for such a crash is “unpredictable”.
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