Grantham Renews ‘Epic Bubble’ Warning After Stocks’ Record Year
- GMO co-founder calls out ‘hysterically speculative’ behavior
- Bearish calls dogged GMO flagship fund in 2020 as stocks rose
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GMO co-founder Jeremy Grantham renewed his grim outlook for U.S. stocks, warning of a “fully-fledged epic bubble,” just days after equity indexes finished off a euphoric year.
Stocks are careening away from fair prices amid “hysterically speculative” investor behavior -- and even the Federal Reserve won’t be able to stop a looming crash, Grantham wrote in a letter, titled “Waiting for the Last Dance,” on Tuesday.