Stock-market legend who called 3 financial bubbles says this is the "real McCoy' of bubbles

https://www.marketwatch.com/story/stock-market-legend-who-called-3-stock-market-bubbles-says-this-on ^ | June 17, 2020 at 7:45 p.m. ET | Mark DeCambre

[wrrock]

Jeremy Grantham: ‘My confidence is rising quite rapidly that this is, in fact, becoming the fourth, real McCoy, bubble of my investment career. The great bubbles can go on a long time and inflict a lot of pain but at least I think we know now that we’re in one. And the chutzpah involved in having a bubble at a time of massive economic and financial uncertainty is substantial.’

"A market that may be the most bubblicious he’s seen in his storied career."

"Grantham is worth paying attention to due to his prescient calls over the years. He said that stocks were overvalued in 2000 and again in 2007, anticipating those market downturns, the Wall Street Journal reports. Grantham also signaled that elements of the financial market had become unmoored from reality leading up to the 2008-09 financial crisis."

[Raycpa]

Calling 3 flips of a coin in a row doesn’t change your odds of being right the fourth time.

[Brown Deer]

?

[Kriggerel]

“...the most bubblicious he’s seen in his storied career.”

“Bubblicious”? Seriously?

Yeah, stopped reading right there.

[SkyPilot]

Right now, millions upon millions of people are living off their 600 bucks a week unemployment and their Covid stimulus checks/debit cards. Millions of people have also benefited from differing their student loan payments, deferring mortgage payments, and enjoying the benefits of not being evicted for failing to pay their rent. Very soon, all of those protections will come to a sudden end. By the beginning of August, you are going to see a lot of desperate people. On top of this, Democrat mayors, governors, senators, and congress persons are determined to keep spreading the economic misery far and wide.

On the other end of the spectrum, we have the markets. The markets are not bounded by economic reality. They are a monster child of the Fed.

Things may get very “interesting“ very rapidly.

[Brown Deer]

GMO Is Feeling Pain Reminiscent of the Late 1990s
October 10, 2019

“It seemed as if every single thing that could go wrong for us from an investment standpoint did,” Ben Inker, GMO’s head of asset allocation, said in the firm’s third-quarter letter to clients. “The recent cycle has gone on for significantly longer and the pain caused to our portfolios has begun to approach 1990s levels.”

The losses GMO suffered during the extreme disparities in stock valuations before the internet bubble burst made it hard to convince clients that its prospective returns “were actually very good,” according to Inker. The firm, founded by Jeremy Grantham, is again seeking to persuade impatient clients that holding tight will similarly pay off.

This time around, the firm’s underperformance versus benchmarks has been 20 percent to 25 percent less than in the late 1990s, he wrote. But the duration has been “particularly painful.”

[Danette]

I have been watching this guy for two months. He has been right EVERY FREAKIN DAY. I do not know how he does it. Sign up for his newsletter so you get emails from him. He does at least one video a day.
He is entertaining as well. You pay nothing. You just get daily advice.
https://youtu.be/anCPgDJSMLg

[plain talk]

From wikipedia:

“Grantham has repeatedly stated his opinion that the rising cost of energy – the most fundamental commodity – between 2002 and 2008 has falsely inflated economic growth and GDP figures worldwide and that we have been in a “carbon bubble” for approximately the last 250 years in which energy was very cheap.

He believes that this bubble is coming to an end. He has stated his opposition to the Keystone Pipeline on the basis of the ruinous environmental consequences that its construction will bring to Alberta and to the entire planet due to the contribution that burning the extracted oil would make to climate change.

In August 2019, he dedicated 98% (on average $1 billion) of his personal wealth to fight climate change.”

Any questions?

[familyop]

Probably a lefty writer there. Markets aren’t high enough for a bubble, and letting a crash happen before the election would be a very foolish business move for investors or businesses.

[RightField]

Bookmark

[MSF BU]

Some words from a much brighter bulb:

https://www.youtube.com/watch?v=NkGrbVoRHqk

[logitech]

Did he eat Cheetos and then weep?

LOL. I think he was complaining about some pain he had then asked somebody about something. I wasn’t really listening.

[FrdmLvr]

He correctly predicted 3 financial bubbles but how many did he incorrectly predict and no one noticed?

[Sgt_Schultze]

This doesn’t explain a bubble, but it may explain some of the instability - LINK

More insanity - HERE

[aquila48]

What other predictions has he made, and how good were they? Every bear or bull is eventually right.

[VanDeKoik]

“By the beginning of August...”

I remember being told this was going to happen in June.

I wonder how much of this stuff is based in real knowledge or some people on FR just really hoping for it just to prove some point.

[volunbeer]

Apparently he predicted the tech bubble in the 90’s......along with everyone who figured out powerpoint and access databases were not a viable business plan.

---

This made me laugh. Same years where the military went bonkers over Powerpoint and having a Microsoft tab was suddenly more important than having a Ranger tab.

[nicollo]

He said that stocks were overvalued in 2000 and again in 2007, anticipating those market downturns, the Wall Street Journal reports

Yeah, no shit. Everyone knew that. Who timed it, who acted on it, and who came back in at the right time?

[Fido969]

So if he both says he’s bullish, and then says its a bubble, whatever happens, he just points to his correct prediction.

A legend in his own mind, perhaps.

[neverevergiveup]

The stock market, like the economy, responds in large measure to intuition and emotion. It’s not what the numbers say. It’s what investors think the numbers say.

[Linda Tripp]

To quote myself “ The only thing that is for certain is uncertainty”.