Tesla tops 10% market share in California—an eighth of EV maker’s global
Heard Californians say that the Model 3 is the new Prius? No exaggeration, they’re everywhere. Tesla surged to a 10.5%...
04:41
Jeremy Grantham, the veteran investment guru, has warned that the US stock market is in a ‘superbubble’, and there would be a historic collapse in stocks as it unwinds.
Grantham argued that the US stock market is in the fourth superbubble of the last hundred years, alongside the great crash of 1929, the dot-com bubble that burst in 2000, and the housing bubble of 2006 that led to the 2008 financial crisis.
In a research note published yesterday, called ‘Let the wild rumpus begin’, Grantham outlined that the current market is showing the same distinct features as those earlier ‘superbubbles’.
Grantham, the co-founder of Boston asset manager GMO, says those features include:
All previous large bubbles have deflated back to their trend levels, Grantham explains. This time, this would mean the S&P 500 index plunging around 45%, back to its trend value of about 2500 points.
Grantham explains:
The bottom line is that in general the bubbles in multiple assets, not just equities, have continued to inflate and therefore the potential pain from a break has increased.
As usually happens, the equity bubble begins to deflate from the riskiest end of the market first – as it has been doing since last February. So, good luck! We’ll all need it.
Grantham is particularly concerned that there are multiple bubbles underway – in real real estate, the US stock market and in bonds, as well as above-trend commodity prices.
What is new this time, and only comparable to Japan in the 1980s, is the extraordinary danger of adding several bubbles together, as we see…
Read More: FTSE 100 falls 1% as markets drop; retail sales hit by Omicron – business
Heard Californians say that the Model 3 is the new Prius? No exaggeration, they’re everywhere. Tesla surged to a 10.5%...
Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The major indexes last...
Investors on Friday got a taste of the sort of market shock that could come if Russia invades Ukraine. The...
NEW YORK, Feb. 11, 2022 /PRNewswire/ -- The biodegradable chelating agents market size potential growth will be USD 357.93 million...
Tel Aviv’s office shortage and eye-popping prices have become so intense that a startup founder who had recently raised funds...
By Sabela Ojea Credit Agricole SA reported on Thursday a significant rise in net profit and net income for the...
© 2020 Marketofbusiness.com
Subscribe to our mailing list and get interesting stuff and updates to your email inbox.
Thank you for subscribing.
Something went wrong.
We respect your privacy and take protecting it seriously