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Jeremy Grantham says this is 'the most expensive market in 'American history'
Investor Jeremy Grantham claims the U.S. stock market has reached its most expensive valuation in American history. He attributes this record high to the artificial intelligence boom. Grantham advises investors to exit U.S. equities to avoid a predicted historic crash.
What changed
Grantham linked record market valuations to the AI boom and predicted a potential 70% crash.
Live updates
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Jeremy Grantham Warns U.S. Stocks Are at Most Expensive Level in History
confidence 90%Investor Jeremy Grantham claims the U.S. stock market has reached its most expensive valuation in American history. He attributes this record high to the artificial intelligence boom. Grantham advises investors to exit U.S. equities to avoid a predicted historic crash.
What's confirmed:
- Jeremy Grantham stated that the U.S. market is the most expensive in American history based on the stock market value compared to GDP with modifications.
- Grantham claims the artificial intelligence boom pushed U.S. stocks to a record high.
- The GMO co-founder warned that U.S. stocks could plunge 70%.
- Grantham believes AI competition will be vicious and drain profits for tech companies.
Still unconfirmed:
- The U.S. market hit a record 235% market cap-to-GDP ratio.
- A stock market crash is likely within two years.
- Investors will lose their shirts in AI.