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“2000 showed you can just about skate through a stock market event, but Japan and 2008 showed you can’t skate through a housing crisis,” Grantham says. Wall Street titan Jeremy Grantham has been warning of a “superbubble” in the U.S. since last year, arguing the S&P 500 is set to be cut in half as an era marked by exceedingly risky investor behavior begins to fade. Now, the cofounder and chief investment strategist of the Boston-based asset management firm Grantham, Mayo, and van Otterloo (GMO) is warning the U.S. may be headed toward a housing crisis as mortgage rates soar,...

Let's discuss value investor Jeremy Grantham's thesis on "super bubbles" and his target for the S&P 500. For almost a half-century, value-investing icon Jeremy Grantham has been calling market bubbles. Now, he says U.S. stocks are in a “super bubble,” only the fourth in history, and poised to collapse. Please do yourself a big favor and play the above interview in entirety. It's not a fluff interview. Bloomberg's Erik Schatzker grills Jeremy Grantham right from the get go about Grantham's view a year ago. Q&A Snips Schatzker: At the risk of putting words in your mouth, you are as certain...

Stocks are off to a tough start this year. The tech-heavy Nasdaq is already in a correction, a more than 10% drop. Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO) said in a report called "Let the Wild Rumpus Begin" that stocks are now in the midst of a "superbubble," that it won't end well. He noted that US stocks have experienced two such "superbubbles" before: 1929, a market fall that led to the Great Depression, and again in 2000, when the dot-com bubble burst. He also said the US housing market was a...

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...

Last year, legendary investor Jeremy Grantham of GMO published a treatise on exploding commodity prices. He also offered a startlingly depressing outlook for the future of humanity. Grantham believes the world has undergone a permanent "paradigm shift" in which the number of people on Earth has finally and permanently outstripped the planet's ability to support us. The phenomenon of ever-more humans using a finite supply of natural resources cannot continue forever, Grantham says--and the prices of metals, hydrocarbons (oil), and food are now beginning to reflect that. Grantham believes that the planet can only sustainably support about 1.5 billion humans,...