GMO's Grantham Predicts A 50% Plunge in Stocks



The S&P 500 will drop almost half off its peak in November 2021 to 2500 by the time U.S stocks bottom. In this excerpt, Jeremy Grantham (GMO co-founder) says that market bubbles are his specialty. Erik Schatzker was the only one he spoke to on Bloomberg’s “Front Row.”
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Michael Canning

Michael has a Masters's Degree in Leadership and Juris Doctorate. After working in private business for 10 years, he started writing. He covers law, business, startups, and technology. One of his passions is researching disruptive technology in business. [email protected]

29 thoughts on “GMO's Grantham Predicts A 50% Plunge in Stocks

  • Avatar
    March 31, 2022 at 12:34 am
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    All Covid overestimation stuff is made up theater for us ! It is done due to financial and economic catastrophe which will destroy our and next generation life . It was due to continuous wars in middle east and rich become more rich, because they have robbed all of us! ! The curtains for this theater is Covid overestimation. Vaccines are distracting our attention from the robbery and as well decreasing our natural immune system. Fact.

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    March 31, 2022 at 12:34 am
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    I think his analysis is spot on, but fails on timing prediction. This gigantic bubble may last years on end.

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    March 31, 2022 at 12:34 am
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    Very wise man. I think he knows that it will be closer to 90%! Consider he is on Bloomberg – DS fake news cheerleaders for what has been happening the past 25 years. They would crap all over him if he said what he really felt!

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    March 31, 2022 at 12:34 am
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    If you cant predict WHEN the market will drop 50% , you might as well not be making a predication at all. At least within a 3 month period.

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    March 31, 2022 at 12:34 am
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    Opinions like yours are very much appreciated. However, we are in extreme different times with many other key factors in play that werent in previous markets….. They! now own the market!!!! yes, read the charts, however, ZOOM OUT and think of the WHY's, regarding the action of the last weeks and going forward. Everything has changed and will change fast in these months ahead. Cant be ignored if advising.I will say we all should prepare for any scenario as the market has always been volatile.I have played safe by putting my assets into active trades,so I don't feel the price if the declination continues.I have made over 16 btc with 2.5btc since early November till date from implementing trades with insights and infos from Randy Douglas.I will advise everyone to stick to this method instead of just waiting on a pump……..

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    March 31, 2022 at 12:34 am
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    Grantham's time has come again. This is a repeat of the 2000-2002 bear market fueled by great expectations that didn't come to pass because valuations became extraordinarily stretched. There will be great pain for investing novices and fans of growth stocks (i.e. TSLA, NVDA, DDOG).

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    March 31, 2022 at 12:34 am
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    A bubble is literally popping infront of our eyes and it's called the ARKK Bubble. Now, is the SPY as overvalued as ARKK? Hell no. The only thing bringing the SPY down that much would be unexpected news like 10%+ CPI data and war. I don't know even know how he got his 2500 SPY valuation anyway. It is slightly elevated due to easy monetary policies, but just like the dot com bubble, within a bubble basket (such as the ARKK etf), there are companies that will do well decades from now just like AMZN and MSFT has done after the dot com bubble burst. It's our job to speculate and pick which ones will become the next mega cap in the decades to come.

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    March 31, 2022 at 12:34 am
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    I do not think this person knows what he is talking about.

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    March 31, 2022 at 12:34 am
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    Agree or not, his opinion is in long form. I want to see every politician and banker/CEO submit to this format

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    March 31, 2022 at 12:34 am
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    This guy predicted the major crashes but has been wrong alot of times too.

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    March 31, 2022 at 12:34 am
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    Grantham’s last words right before he croaks: “the market is about to crash 50%,”.

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    March 31, 2022 at 12:34 am
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    Grantham has definitely caught my attention in the early days of 2022. If he is correct (and I believe that he is) then we are in for a very rough ride in 2022.

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    March 31, 2022 at 12:34 am
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    It’s hard to predict a market crash. Nobody knows when it will happen. Even if inflation is at all time high, I’m piling up cash. During market crashes, cash is king.

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    March 31, 2022 at 12:34 am
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    SHLX today is the last day to BUY to get the large DIVIDEND; SHLX trading about 10 times the earnings with potential 50% upside comparing to the pre-Covid level

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    March 31, 2022 at 12:34 am
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    Anyone who tells you they can predict contractions/expansions with certainty is a charlatan…

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    March 31, 2022 at 12:34 am
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    In 2009 crash I bought a foreclosed home for 74k now that same house is worth 400k and I think it will happen again

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    March 31, 2022 at 12:34 am
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    And all the people commenting on how wrong he's is ,will come to pass as when this bubble bursts ,you'll be wishing you had all you savings in cash ! It's going to be worse then the 1930s

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    March 31, 2022 at 12:34 am
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    And I predict you will pass away eventually.
    If he's that pessimistic on the future, then why don't you just short the crap out of the indices?
    Put your money where your mouth is like Michael Berry.
    Where was this guy last year when we kept hitting all time high?

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    March 31, 2022 at 12:34 am
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    This guy is as respected as Buffet. Oh yeah he's also a super wealthy. I'd rather listen to him then anyone in the comments lol 😆

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    March 31, 2022 at 12:34 am
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    they should retire him long time ago, many companies are doing well, we don't have huge bankruptcies, economy is strong, the bubble is not a bubble it is because people have more money to invest either they accumulated wealth because of working + the stimulus money helped to boost the economy, so more money in the market than there is more money to invest; where you are going to put the money to earn a reasonable interest rate??? We have completely different situation now than in 2009…

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  • Avatar
    March 31, 2022 at 12:34 am
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    Maybe he's trying to cause a crash by preying on everyone's fear so he can buy the dip.

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    March 31, 2022 at 12:34 am
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    The only realistic large scale alternative investment to stocks, commodities, and real estate is government or corporate bonds, but at these rates?

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