John Authers, Columnist

Grantham's Warning Makes Vigilant Bulls of Us All

Stocks should be OK, provided the Fed keeps rates low and investors don’t go too crazy. There isn’t much margin for error.

January 12, 2021 at 5:43 AM UTC

By John Authers

John Authers is a senior editor for markets and Bloomberg Opinion columnist. A former chief markets commentator at the Financial Times, he is author of “The Fearful Rise of Markets.”

Watch those bond yields closely.
Photographer: ANDREW HARRER/Bloomberg

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So. Is it a bubble or isn’t it? Last week, the veteran bubble aficionado Jeremy Grantham, founder of the GMO fund management group in Boston, opined that U.S. stock markets are now into the final stages of a speculative bubble, worthy of comparison with the dot-com bubble, the Great Crash of 1929, and the South Sea Bubble.