The end of the US stockmarket superbubble

The US stockmarket is in its fourth “superbubble” of the last 100 years, says Jeremy Grantham. So what should you do?

Jeremy Grantham
GMO founder Jeremy Grantham
(Image credit: © Lane Turner/The Boston Globe via Getty Images)

Jeremy Grantham, the founder of asset manager GMO, has a long history of leaning towards the bearish side of things. But he also has a long history of being right about bubbles. And today, according to his latest research note released just before this week’s market turmoil, he thinks the US stockmarket is not just in a bubble, but in a “superbubble”.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.