Business & Investment

Stock market legends show weeks of “putting the last desperate chip into the game.”

“There are weeks of extra funding, weeks of putting the last desperate chips into the game, and even more spectacular busts … When this level of obvious super-enthusiasm is reached, the bubble is always, without exception, years. Instead, it broke in the next few months.

— Jeremy Glasam

This is Boston-based money managers Grantham, Mayo and Van Otterloo & Co. Up-to-date with Jeremy Grantham, co-founder and chief investment strategist at, warns speculators who are pushing the equity market to new heights in the biggest pandemic. Last century.

In an interview with Bloomberg TV’s “front row,” a renowned investor, often credited with some visionary market calls over the last two decades, is free money from the Federal Reserve and government finances. The stimulus, which claims a steady increase in stocks promoted by, cannot continue without results.

“If you think you live in a world where production isn’t important and you can make paper, you’ll sooner or later do something impossible. It’s about regaining inflation,” Grantham warned.

This is far from the first warning Grantham rang in recent weeks, but he is now proposing $ 1.9 trillion by newly appointed US President Joe Biden as a further reason for the final burst of the bubble. Pointing out the Coronavirus Relief Package.

Grantham is worth paying attention to his visionary call over the years. He said stocks were overvalued in 2000 and 2007 in anticipation of a downturn in these markets. The Wall Street Journal Report.. Grantham also suggested that elements of financial markets were unleashed from reality until the 2008-09 financial crisis.

However, GMO was well below the S & P500 index

In 2020, according to a report by Bloomberg News on Tuesday..

In June, Ben Inker, one of GMO’s key investment managers, told investors in a customer letter quoted by Bloomberg that it was time to sell his shares. Inker suggested to Bloomberg that investing was not an easy game.

Meanwhile, US stocks have resisted Grantham’s bearish forecasts and gravity.Nasdaq Composite Index
+ 0.09%
Dow Jones Industrial Average

All S & P 500 indices are trading near past peaks.

Stock market legends show weeks of “putting the last desperate chip into the game.” Stock market legends show weeks of “putting the last desperate chip into the game.”

Back to top button