Jeremy Grantham, predictor of financial bubbles, updates market call

WealthTrack

• Jeremy Grantham, the cofounder and chief investment
  strategist at the $71 billion Grantham, Mayo, & van
  Otterloo, has become a world-renowned market voice by calling
  the past two major financial bubbles.
• He was growing ever-convinced of a severe bubble burst
  earlier this year, until President Donald Trump’s global
  trade-war escalation injected skepticism into the market,
  nipping a mounting crash in the bud.
• Grantham has now adjusted his market outlook to
  something far less immediately severe than a bubble-driven
  crash — but argues considerable pain could still be in store
  for investors.

In late 2017, the investing legend Jeremy Grantham was officially
on bubble watch.

He said as much in a quarterly letter he coauthored
for his firm, Grantham, Mayo, & van Otterloo (GMO),
back in December. It wasn’t an extremely pressing concern quite
yet but something in the back of his mind.

That all changed in January when, as he describes it, stories of
investor overconfidence became too numerous to ignore. …

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