We Study Billionaires - The Investor’s Podcast Network TIP466: The Bear Has Arrived w/ Jeremy Grantham
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Jul 29, 2022 
Join Jeremy Grantham, co-founder of GMO and market expert, as he shares his bold predictions for the economy. He discusses the possibility of prolonged high interest rates and warns of a market reminiscent of the stagflation era. Grantham highlights the alarming scarcity of essential resources like lithium and copper amid technological advancements, and stresses the urgency of addressing climate change through innovative solutions. Listeners will gain insights on navigating today's economic landscape and the strategic investments of the future.
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Early Bubble Deflation
- The market bubble started deflating earlier than January 2022, evident in the decline of speculative assets like QuantumScape and ARK.
- These declines, starting in late 2020 and early 2021, signaled the bubble's weakening before the broader market downturn.
Market Bottom Prediction
- Jeremy Grantham predicts the S&P could drop 50% from its peak, adjusted for inflation and trend.
- He notes that markets often fall below fair value during major corrections, citing historical trends.
Amazon's Dot-Com Drop
- During the dot-com bust, Amazon's stock plummeted 92% despite rising sales, demonstrating irrational bear market behavior.
- Grantham highlights that markets can be irrational about 20% of the time, drastically mispricing even successful companies.