“Bubble seer” warns: in case of severe recession, S&P 500 will drop to 2,200 points
$Nasdaq Composite Index(.IXIC.US$ $Invesco QQQ Trust(QQQ.US$
Source: Global Market Report
Legendary investor and GMO co-founder Jeremy Grantham (Jeremy Grantham), who has successfully predicted the past two market crashes, once again warned of a potential “superbubble” in the US stock market in an interview earlier this month.
Although the current market trend is close to an all-time high, Grantham advises investors to proceed with caution as he anticipates a sharp decline in the market.
He believes that in the event of a recession, the S&P 500 index may drop to around 3,200 points, and in the case of a severe recession, it may drop to 2,200 points. This represents a decrease of 32% to 53% from current levels.
Despite the resilience of the US economy and the Federal Reserve's shift to a dovish stance, Grantham warned investors not to be too optimistic. Optimism can be fatally misleading under unfavorable conditions, he said. He believes that this optimism may be beneficial after a market crash, but it may become dangerous when the market reaches its peak.
Grantham has been warning of a potential “superbubble” in recent years, predicting that the stock market will generate disappointing long-term returns. However, his warning seems to have gone unheeded, and investors are still optimistic about the market's upward prospects.
In a recent interview, Grantham attributed this situation to inherent human optimism and Wall Street's commercial interests, and big company strategists rarely take a bearish position because it could affect their profits. As the market continues to move higher, Grantham sticks to his predictions and urges investors to be cautious amid the ongoing market frenzy.
Source: Global Market Report
Legendary investor and GMO co-founder Jeremy Grantham (Jeremy Grantham), who has successfully predicted the past two market crashes, once again warned of a potential “superbubble” in the US stock market in an interview earlier this month.
Although the current market trend is close to an all-time high, Grantham advises investors to proceed with caution as he anticipates a sharp decline in the market.
He believes that in the event of a recession, the S&P 500 index may drop to around 3,200 points, and in the case of a severe recession, it may drop to 2,200 points. This represents a decrease of 32% to 53% from current levels.
Despite the resilience of the US economy and the Federal Reserve's shift to a dovish stance, Grantham warned investors not to be too optimistic. Optimism can be fatally misleading under unfavorable conditions, he said. He believes that this optimism may be beneficial after a market crash, but it may become dangerous when the market reaches its peak.
Grantham has been warning of a potential “superbubble” in recent years, predicting that the stock market will generate disappointing long-term returns. However, his warning seems to have gone unheeded, and investors are still optimistic about the market's upward prospects.
In a recent interview, Grantham attributed this situation to inherent human optimism and Wall Street's commercial interests, and big company strategists rarely take a bearish position because it could affect their profits. As the market continues to move higher, Grantham sticks to his predictions and urges investors to be cautious amid the ongoing market frenzy.
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