Jeremy Grantham: The U.S. Market Is in a Super Bubble

<p>Our guest this week is Jeremy Grantham. Jeremy is the long-term investment strategist at his namesake firm, Grantham, Mayo, Van Otterloo & Co., or GMO, which he cofounded in 1977. He serves on GMO's Asset Allocation Committee and board of directors. Prior to GMO, Jeremy was cofounder of Batterymarch Financial Management and before that was an economist at Royal Dutch Shell. He earned his undergraduate degree from the University of Sheffield and his MBA from Harvard University. Jeremy is a member of the Academy of Arts and Sciences, holds a CBE from the U.K., and is a recipient of the Carnegie Medal of Philanthropy.</p><p><strong>Background</strong></p><p><a href="https://en.wikipedia.org/wiki/Jeremy_Grantham" target="_blank">Bio</a></p><p>“<a href="https://moneyinc.com/jeremy-grantham/" target="_blank">10 Things You Didn’t Know About Jeremy Grantham</a>,” by Allen Lee, moneyinc.com.</p><p><strong>Bubbles</strong></p><p><a href="https://www.investopedia.com/terms/t/three-sigma-limits.asp" target="_blank">Three-Sigma Limits Definition</a></p><p>“<a href="https://www.gmo.com/americas/research-library/let-the-wild-rumpus-begin/" target="_blank">Let the Wild Rumpus Begin</a>,” by Jeremy Grantham, gmo.com, Jan. 20, 2022.</p><p>“<a href="https://financialpost.com/moneywise/super-bubble-jeremy-grantham-says-historic-crash-has-begun" target="_blank">‘Super Bubble’: Jeremy Grantham Says Historic Crash Has Begun</a>,” by Clayton Jarvis, financialpost.com, Jan. 25, 2022.</p><p>“<a href="https://www.forbes.com/sites/lcarrel/2022/01/26/jeremy-grantham-says-market-is-in-superbubble-and-could-fall-50/?sh=7362fcf2473f" target="_blank">Market ‘Superbubble’ Could Lead to 50% Plunge, Says Grantham</a>,” by Lawrence Carrel, forbes.com, Jan. 26, 2022.</p><p>“<a href="https://www.thinkadvisor.com/2022/01/24/gmos-grantham-7-reasons-were-in-a-stock-collapse-and-what-to-do-now/" target="_blank">GMO’s Grantham: 7 Signs We’re in a Stock Collapse (And What to Do Now)</a>,” by Janet Levaux, thinkadvisor.com, Jan. 24, 2022.</p><p>“<a href="