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Friday, January 21, 2022

“Checklist for a super bubble running through its phases is now complete and the wild rumpus can begin at any time” says #GMO’s Jeremy Grantham

Jeremy Grantham Doubles Down on Crash Call, Says Selloff Has Started 

Calculates losses in U.S. alone may reach $35 trillion!

"Checklist for a super bubble running through its phases is now complete and the wild rumpus can begin at any time," Grantham, 83, writes in his note. "When pessimism returns to markets, we face the largest potential markdown of perceived wealth in U.S. history."

It could, he said, rival the impact of the dual collapse of Japanese stocks and real estate in the late 1980s. Not only are equities in a super bubble, according to Grantham there's also a bubble in bonds, "the broadest and most extreme" bubble ever in global real estate and an "incipient bubble" in commodity prices. Even without a full reversion back to statistical trends, he calculates that losses in the U.S. alone may reach $35 trillion.



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