Legendary investor Jeremy Grantham sees an epic market bubble and expects a historic crash. Here are his 12 most dire warnings.


REUTERS/Nicholas Roberts

Jeremy Grantham has warned investors that they are in a historic bubble and are in danger of a devastating crash.

The last three market bubbles were called by the market historian. He has pointed out several signs of impending doom, including investor euphoria, excessive valuations, and rampant speculation on risky assets.

Here are the best quotes from Grantham since the beginning of the epidemic.

1. "My confidence is rising quite rapidly that this is, in fact, becoming the fourth real McCoy bubble of my investment career." June 2020

2. The market can go up on bad news and go down on good news. There's nothing you can do to stop it. November 2020.

3. I have never had any illusions about my ability to time the bubble breaking. I don't have a definition of success, it's that the market will be lower than the point at which I suggested you should leave. November 2020.

4. This could very well be the most important event of your investing life, for the majority of investors today. We are waiting for the last dance and the music to stop. January 2021.
5. The bubble has always been broken in the next few months when you reach this level of enthusiasm. January 2021.
6. I sympathize with the people who are enjoying this bubble, but they have always ended badly, and I have no doubt that this one will do the same. February 2021.

7. We will have to live with the biggest loss of perceived value from assets that we have ever seen. May 2021.

8. People are having fun, but they will lose everything in the end. I'm sorry for them because I'm sure they can't afford to lose everything. May 2021.

9. It's difficult to see bubbles because you know when the bust will come. When the markets are on the front pages instead of the financial pages, when the news is full of stories of people getting cheated, and when new coins are being created every month, you can see it. July, 2021.

10. Everyone can see that this bubble is real. It's as obvious as the nose on your face. July 2021.

11. You knew that the bubble was going to break last year, but you didn't know if it was going to break the next Wednesday or the year after. We've checked off every condition that a bubble needs in terms of crazy behavior. This has been more crazy than 2000 and 1929. September 2021.

12. There's a bigger buy-in this time to the idea that prices never decline, and that all you have to do is buy. When the decline comes, it will be better than any other time in US history. November 2021.

Business Insider has an original article.