Invest Like the Best with Patrick O'Shaughnessy

Jeremy Grantham - A Historic Market Bubble – [Invest Like the Best, EP.214]

Feb 23, 2021
Join Jeremy Grantham, Long-Term Investment Strategist and Co-Founder at GMO, as he shares his profound insights on market bubbles. He discusses the distinctive signs indicating we're currently in a bubble, driven more by retail investors than institutions. Grantham emphasizes the importance of demographics and productivity for future market trends. Prepare for a captivating dialogue that blends history and contemporary market analysis, offering crucial lessons for navigating today's financial landscape.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Current Market Bubble

  • This market surpasses the 2000 tech bubble in overvaluation, with 80% of value measures exceeding those of 2000.
  • Value is a poor timing mechanism; acceleration and crazy behavior are better indicators.
INSIGHT

Bubble Indicators

  • Two key signs of a bubble are accelerating stock prices at 2-3x the normal rate and crazy market behavior.
  • Increased media coverage of financial news and speculative investments are strong indicators of a bubble.
ANECDOTE

SPACs: A License to Rip Off Investors

  • Jeremy Grantham views SPACs as speculative and poorly regulated, benefiting organizers and hedge funds at the expense of regular investors.
  • He considers them a "license to rip investors off."
Get the Snipd Podcast app to discover more snips from this episode
Get the app