"Foam Hunter" Grantham warns again: US stocks "super bubble" high for the third time in history

Legendary market strategist Jeremy Grantham recently issued a warning that the US stock market is currently in a "super bubble" state, ranking third in history, only behind the 1989 Japanese bubble and the real estate bubble of the same period. Grantham explicitly stated in an interview, "I have always believed that the longer a bubble lasts, the larger it becomes, and the higher it reaches, the more exciting and dangerous it becomes. And now, the US stocks have risen to the level of a super bubble." However, he also pointed out that there is still a certain gap between the current US stock bubble and the 1989 Japanese bubble and the real estate bubble at that time. In fact, this is not the first time GMO co-founder Grantham has predicted that the US stock market is on the verge of collapse. He warned investors to avoid US stocks in 2024 and predicted a 50% drop in the US stock market in 2023, but the S&P 500 index rose by over 23% in both years. Despite this, Grantham still has many followers because he successfully predicted the 2008 real estate market crash and the dot-com bubble. Grantham also mentioned that the valuations of technology, artificial intelligence, and AI-related stocks are already too high. He said that investing in the "GREEN ECONOMY" would make him feel more comfortable, but he did not specify any specific assets. Grantham believes that the future of the "GREEN ECONOMY" will be "long and challenging," but he emphasized that it is necessary to prevent the collapse of civilization.