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“A Dangerous Moment for the Global Economy” — Veteran investor Jeremy Grantham warns that the S&P 500 could plunge another 26%.

Jeremy Grantham, co-founder of Boston-based asset management firm Grantham Mayo & Van Otterloo (GMO), said in a statement that the Standard & Poor’s 500 (S&P 500) will be 12 years ahead. We believe it could drop another 26% in the month. Investors done last week. The GMO co-founder detailed his bearish sentiment, saying junk bonds and the Nasdaq Composite were also short.

GMO co-founder says ‘worsening fundamentals’ is shocking — ‘Central banks will be upset, they will do what they can, maybe’

Investor and GMO co-founder Jeremy Grantham’s outlook for the stock market is bleak, and last Wednesday he told the Reuters Global Markets Forum that it’s much more than the subprime mortgage debacle 15 years ago. “This is a moment that looks more dangerous to the global economy than the housing bubble madness of 2007,” Grantham said at a Reuters event. He is a well-known investor and entrepreneur on Wall Street, having started one of the first index funds in .

As of December 2020, GMO manages $65 billion in assets under management (AUM), and recently Grantham has been a vocal critic of the world’s economic failures. Grantham also had a lot to say during his 2007-2010 “Great Recession” in statements on Obama’s economics and the housing bubble that erupted at the time. Grantham told the Reuters Global Markets Forum last week that the S&P 500 could fall 26% next year. During the discussion, he explained that he was also betting on the Nasdaq Composite and junk bonds.

Grantham stressed that some of the most highly valued assets, known as the “superbubble,” peaked by the end of last year. “The deterioration in fundamentals on a global basis looks absolutely shocking,” Grantham said. Grantham says that a year from now he predicts that the S&P 500 will print a value of around 3,000 points and could even be “pretty low.” Reuters reports that inflation has hit Americans hard, and sales are expected to drop significantly this year’s holiday season.

In addition, global reinsurers blame rising global risk protection rates on inflation and the war between Ukraine and Russia. Legendary investor Grantham said people tend to forget to calculate inflation pressure.

“People forget to adjust the S&P for inflation…your assets are worth 9% last year due to inflation,” said GMO’s chief assets strategist. “This turns a marginal bear market into a pretty serious bear market,” Grantham added. Grantham joins Michael Barry and other Wall Street pundits who believe a stock market crash is coming.

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assets, bear market, economics, economics, gmo, grantham mayo & van otterloo, holiday sale, inflation, inflationary pressure, jeremy grantham, junk bonds, legendary investors, michael barry, nasdaq composite, s&p 500, s&p 500 forecast, Standard & Poor’s 500, Superbubble, Traders, Ukrainian-Russian War, US Economy, Wall Street

What are your thoughts on Grantham’s opinion and S&P 500 forecast? Let us know what you think about this in the comments section below.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.

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“A Dangerous Moment for the Global Economy” — Veteran investor Jeremy Grantham warns that the S&P 500 could plunge another 26%.

Source link “A Dangerous Moment for the Global Economy” — Veteran investor Jeremy Grantham warns that the S&P 500 could plunge another 26%.

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