Jeremy Grantham: US blows a stockmarket bubble

Veteran investor Jeremy Grantham dismissed the 2003-2007 upswing as “the greatest sucker rally in history”; warned in 2007 that the housing bubble would burst; and turned bullish on stocks in March 2009. He’s now worried that US stocks, which he says in a Barron’s interview are 65% overpriced, are blowing a new bubble.

Ever since the 1990s, says Grantham, the US Federal Reserve has come to the markets’ rescue with low interest rates and liquidity whenever there has been a panic or downturn.

The bailout of the hedge fund Long-Term Capital Management in the late 1990s led to the dotcom [...]

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