"This is 4th (speculative) bubble of my (50-year) career" - Grantham
June 22, 2020
Jeremy Grantham , globally one the best analysts I know says:
“My confidence is rising quite rapidly that this is, in fact, becoming the fourth, real McCoy, bubble of my investment (50 year) 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.”
“This is really the real McCoy, this is crazy stuff,” said Grantham.
“Grantham painted a very dire picture of the investment landscape in the U.S., suggesting that rampant trading by out-of-work investors and speculative fervor around bankrupt companies, including car-rental company Hertz Global Holdings Inc. HTZ, -3.88%, reflects a market that may be the most bubblicious he’s seen in his storied (50-year) career.”
Asked what level of exposure investors should have to U.S. equities, Grantham offered an unflinching view that may leave some bulls gobsmacked. “I think a good number now is zero and less than zero might not be a bad idea if you can stand that.”