Jeremy Grantham warns of stock market crashes again

Jeremy Grantham, an 86-year-old billionaire investor from Britain, is known for his warnings about stock market bubbles. He has been successful on Wall Street since the 1960s and is the co-founder of GMO, a major money management firm. Grantham gained a reputation for his pessimistic outlook during market highs, earning him the nickname “the skunk at the garden party.” Recently, Grantham's warnings have gained attention as U.S. stock markets experienced a significant decline. The Nasdaq index dropped 4% in one day, its biggest fall in three years, while the S&P 500 fell 10% from its recent peak, erasing $5.2 trillion in value. Grantham had previously warned about the inflated prices of popular technology stocks, stating that the U.S. market was experiencing a "super bubble." Although Grantham acknowledges the potential of artificial intelligence, he believes the market's excitement around it is unsustainable. He compares the current situation to past market bubbles, like the railway boom in 19th century Britain. As companies linked to AI saw huge gains in the past years, Grantham remained cautious, highlighting the risks of such rapid increases. In addition to his market predictions, Grantham is now sounding alarms about a different issue: the effects of new chemicals on global health. He argues that these chemicals are harming human health more than past toxins like lead. He points to declining birth rates and rising health issues as significant concerns linked to these substances. Despite skepticism about his predictions, Grantham's insights bring a sense of realism to the financial world, particularly during recent economic downturns. His long history and experience as an investor continue to shape his views on market behavior and public health.