Jeremy Grantham’s best quotes of 2022: Superbubble, Market Crash, Bitcoin

  • Jeremy Grantham has signaled a “superbubble” in asset prices and warned of an epic stock market crash last year.
  • The GMO co-founder and market historian also analyzed bitcoin and predicted a global housing crisis.
  • Here are Grantham’s 8 best quotes of 2022.

Legendary investor Jeremy Grantham rocked Wall Street last year by sounding the alarm over an asset price “superbubble” and predicting it would end in an epic stock market crash.

The market historian and co-founder of GMO also trashed bitcoin, warned of a global plunge in house prices and urged investors not to be fooled by short-lived rallies.

Here are Grantham’s 8 best quotes of 2022, slightly edited for length and clarity:

1. “Most super bubbles go below the trend and stay there for quite a while. This time the trend is at most 2500. It will be hard to stop the market from falling to that level.” (January 26) (Grantham’s S&P 500 forecast suggests the benchmark stock index could plunge another 34% from its current level of around 3,800 points.)

2. “We have a market today that looks superficially like 2000, and I think it’s going to play out like 2000 initially. Then the deflationary effects on the economy and the stock market will result in a world much like the 1970s, where all assets are simply much cheaper than they are today.” (9 May)

3. “We are really playing with all the assets, and that has proven, historically, to be very dangerous.” (May 18) (Grantham pointed to soaring prices for stocks, bonds, housing, energy, metals and food.)

4. “There’s nothing as quick and dramatic as a bearish rally. In hindsight they mean very little, but in the moment they scare the bears off and give hope that it’s all over, all is forgotten, and it’s back to the races.” (July 29)

5. “Bitcoin is not a good store of value, as we have seen. It is terrible for a currency exchange. It is expensive to transact, but worst of all, it is deadly for the environment. It’s incredibly energy-intensive to give you a speculative instrument to bet on, that’s all. The fact that it takes our precious energy and has a carbon footprint is the worst crime, and more the sooner it disappears the better.(July 29)

6. “Every cycle is different and unique – but every historical parallel suggests the worst is yet to come.” (August 31)

7. “I think real estate markets around the world will spend the next big chunk of their time crashing and causing all kinds of trouble, perhaps unexpected.” (September 1st)

8. “This is a time that looks more dangerous in the global economy than even the housing bubble craze of 2007. The deterioration in fundamentals globally looks absolutely shocking.” (8 September)

Read more: The world’s largest investment firms pay Rob Arnott for his advice. He shares 2 trades he says will produce 15% annualized returns over the next decade – and explains why there’s a “decent chance” the market will see new lows.

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