Billionaire Investor Who Accurately Called Dot-Com Bubble Issues Urgent Stock Market Warning, Says Equities Could Decline by up to 70%

Billionaire investing legend Jeremy Grantham is issuing a dire warning on US equities, believing inventory values might witness an enormous collapse just like the dot-com bubble.

In a CNBC interview, Grantham warns that the inventory market valuations at the moment are akin to these seen throughout the dot-com bubble of the early 2000s.

In response to the billionaire investor, his metrics present that equities are extraordinarily overvalued.

“In a really actual sense, I’m unsure there’s a comparable, however the tech bubble of 2000 would come the closest. On the ways in which the worth methods are probably the most predictive, based mostly on the worth of the inventory market in comparison with the GDP with modifications, that is the most costly market in American historical past.”

Whereas Grantham says the collapse may be very tough to time, he notes that it could possibly occur by 2028.

“My guess is someday between two weeks in the past, two weeks from now, two months, two quarters, and conceivably two years; the timing is at all times terribly unsure. The market’s going to peak out and drop again to development. And getting again to development from right here is nearer to a 70% decline than a 50% decline.”

He additionally reminds traders that throughout the dot-com bubble, the NASDAQ dropped by over 80%.

“Keep in mind, we mentioned a 75% decline for the NASDAQ in 2000, in our quarterly letters, and it went down 82%.”

At time of writing, the NASDAQ is valued at 29,839. A 70% collapse might see it buying and selling beneath 9,000.

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