Jeremy Grantham Warns of a 17% Plunge in the S&P 500 This Year
- Range of problems larger than it usually is, strategist says
- He doesn’t rule out a ‘brutal decline’ to 2,000 for S&P 500
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The popping of the bubble in US stocks is far from over and investors shouldn’t get too excited about a strong start to the year for the market, warns Jeremy Grantham, the co-founder and long-term investment strategist of GMO.
In fact, the 84-year-old money manager calculated that the value of the S&P 500 at the end of the year should be about 3,200, he says in a paper out Tuesday. That would equal an almost 17% full-year drop and a 20% decline for the year from current levels. Grantham believes the index is likely to spend some time below that level during 2023, including around 3,000.