{"id":56369,"date":"2021-01-08T09:52:40","date_gmt":"2021-01-08T14:52:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56369"},"modified":"2021-01-08T10:43:31","modified_gmt":"2021-01-08T15:43:31","slug":"lance-roberts-gmos-jeremy-grantham-is-correct-theres-an-epic-bubble-in-stocks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56369","title":{"rendered":"Lance Roberts: GMO’s Jeremy Grantham Is Correct, There’s An ‘Epic Bubble In Stocks’"},"content":{"rendered":"
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Lance Roberts: GMO’s Jeremy Grantham Is Correct, There’s An ‘Epic Bubble In Stocks’<\/a><\/h3>\n<\/header>\n
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Following GMO’s co-founder Jeremy Grantham’s renewed\u00a0warning<\/a>\u00a0about extreme overvaluations, RIA Advisors Chief Investment Strategist Lance Roberts chimed in on the conversation Thursday morning.<\/p>\n

In\u00a0“Three Minutes on Markets & Money,”<\/em>\u00a0Roberts agress\u00a0with Grantham, saying, “the stock market is in a bubble.”<\/p>\n

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To refresh readers on Grantham’s Tuesday note titled\u00a0“Waiting for the Last Dance,”<\/em> Grantham wrote, “today, the P\/E ratio of the market is in the top few percent of the historical range, and the economy is in the worst few percent. This is completely without precedent and may even be a better measure of speculative intensity than any SPAC.”<\/p>\n

He wrote while he doesn’t know when the bubble will burst, the bust cycle is inevitable, and not even the Federal Reserve can prevent it.<\/p>\n

“Make no mistake – for the majority of investors today, this could very well be the most important event of your investing lives,” Grantham said.<\/em><\/p><\/blockquote>\n

So back to Roberts, he says bubbles are a function of the market and repeat throughout time. Clearly, that is true in the figure below, showing bubbles over the past four decades.<\/p>\n

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Today is “clearly a bubble,” he said, adding that S&P500 valuations are overly stretched.<\/p>\n

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