Grantham Calls Meme Stocks ‘Biggest U.S. Fantasy Trip’

  • Covid crash distinct from classic bull market ending: Grantham
  • Traditional 60/40 portfolio looks ‘particularly dangerous’
Jeremy GranthamPhotographer: Matthew Lloyd/Getty Images
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Investors are witnessing the “biggest U.S. fantasy trip of all time” in the stock market thanks to a clueless Federal Reserve, speedy stimulus and surprising success with Covid-19 vaccinations, according to Jeremy Grantham, financial historian and co-founder of the investment firm GMO.

It’s been just over a year since the last stock market crash, which resulted in a 35% drop from peak to trough, followed by the fastest rebound in history.