The United States predicted an economic crisis worse than the Great Depression
Investor Grantham: a “crazy” bubble has formed in the US markets, which will soon burst
The American stock market has formed an even crazier bubble than before the Great Depression in the 20th century, British billionaire investor Jeremy Grantham said in an interview with CNBC.
He recalled that in 1929 the market was on the rise and ignored bad forecasts, and then crashed. A similar trend is observed now.
“The market is optimistic and does not pay attention, even if forecasts show the opposite, as it is happening today. <…> It brushes off both the news about the rise in interest rates and the data on the refusal of the Fed to buy bonds,” Grantham explained.
He suggested that the S&P 500 could fall more than ten percent in the coming months.
According to the investor, the growing popularity of the so-called meme shares and cryptocurrencies speaks of extreme confidence in the financial markets and the upcoming collapse.
Source: Al Jazeera website