Sunday, October 25, 2020

Value Investing Legend Sees Bubble "Like No Other" Bursting In "Weeks Or Months"

 "Back in June, the generally cheerful investing icon Jeremy Grantham unleashed fire and brimstone, taking his $7.5BN portfolio to a net short position for the first time since the financial crisis, and summarizing his dire assessment of the current unprecedented situation simply by saying "this will end badly."

Doubling down on his apocalyptic message, the one-time value investing guru told CNBC at the time that the US stock market is in a unprecedented bubble and investing in it is "simply playing with fire."

"I have been completely amazed," the veteran bearish investor said in an interview Wednesday on CNBC.

"It is a rally without precedent - the fastest in this time ever and the only one in the history books that takes place against a background of undeniable economic problems."

His advice to an entire generation of young daytraders jumping into the market now was to sell U.S. stocks, buy emerging market equities and “throw the key away” for a few years, he said, adding "this is becoming the fourth real McCoy bubble of my career."

at https://www.zerohedge.com/markets/value-investing-legend-sees-bubble-no-other-bursting-weeks-or-months

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