March 3 - Legendary market strategist Jeremy Grantham (Trades, Portfolio) has warned that U.S. equities are in a “super bubble,” ranking third only to Japan's 1989 surge and the U.S. real estate boom of that era.
Grantham, co-founder of GMO, has a history of forecasting market downturns, having cautioned investors in 2024 and predicting a sharp decline in 2023. Despite these warnings, the S&P 500 posted gains of more than 23 percent in both years, leaving his outlook at odds with recent market performance.
The expert emphasized caution towards current high prices in technology together with artificial intelligence and recommended renewable developments as safer investment opportunities. According to Grantham, the road to transitioning to a sustainable economy will be lengthy and uncertain, yet he sees this transition as a path to better market results.
These comments can serve as a contribution to the discussion around valuations in the market and the investors' strategy in general at a time when the population is concerned with the level of sustainability and risk management in the modern economy.
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