Listen Now: GMO's Jeremy Grantham on Merryn Talks Money
Oct 6, 2023
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In this podcast, Merryn Somerset Webb speaks with Jeremy Grantham of GMO about the power of AI, the state of the financial bubble, and the impact of artificial intelligence on the market.
2022 marks the beginning of the deflation of one of the greatest financial bubbles in history, interrupting the usual presidential cycle rally.
The AI-driven rally provided a temporary boost, but AI may not be sufficient to halt the ongoing collapse of the bubble.
Deep dives
The Beginning of the Bubble Burst
According to the podcast, the year 2022 marked the beginning of the deflation of one of the greatest financial bubbles in history. The market had been steadily rising for years, but now it was starting to collapse. The podcast discusses how previous market declines were typically avoided due to the presidential cycle, where there would be a period of stimulus and economic stimulation leading up to the election. However, this time, the decline occurred during the deflating phase of the bubble, interrupting the usual presidential cycle rally. Despite some temporary reprieves, the podcast suggests that the bubble is far from over.
The Impact of Artificial Intelligence on the Bubble
The podcast also mentions the impact of artificial intelligence (AI) on the bubble. While the AI-driven rally did provide a temporary boost, the podcast argues that it is not enough to stop the deflating of the bubble. The rally was fueled by a handful of significant AI-driven stocks, leading to a rise in the S&P index. However, the podcast emphasizes that although AI is a real and influential force in the market, it may not be sufficient to halt the ongoing collapse of the bubble. Overall, the podcast suggests that the bubble is still in the process of deflating and advises listeners to stay informed about the developments in order to protect themselves.
Hey 'What Goes Up' listeners, here's another Bloomberg podcast you might enjoy: Merryn Talks Money. It's hosted by senior columnist Merryn Somerset Webb and every week aims to explain how markets work – and how you can make them work for you. Every episode features a relaxed but in-depth conversation with a fund manager, a strategist, a Bloomberg expert or just someone Merryn finds particularly interesting in any given week. Listen in for the kind of insights and explanations everyone can use to help them make better saving and investing choices. This week Merryn speaks to GMO's Jeremy Grantham. Listen to part of the conversation here and the whole thing on the Merryn Talks Money feed.