Billionaire Investor Jeremy Grantham Predicts Market Crash

British Billionaire Investor Jeremy Grantham predicts a 70% chance of a market crash in upcoming years.

Jeremy Grantham is a British billionaire whose net worth is roughly around $1Bn, and he is also the co-founder of an asset management company GMO LLC. In an interview, he recently said there is a 70% chance that we will face a Market crash, similar to the 1929 crisis & 2000.

In an interview with WealthTrack on July 1, the Billionaire investor said that stocks could face an upto 70 percent chance of crashing in just a few years, as asset prices are in the bubble zone and there's a 70 percent chance that this bubble could burst in next one or two years.

Earlier, Jeremy predicted an 85% chance of a stock market crash, but since the rise of AI and investor's interest in the future of the Artificial Intelligence market fuelled the stock markets, and some individual stocks skyrocketed (NVIDIA share price has surged over 210% since the beginning of this year). According to Jeremy Grantham, investors' interest and excitement in AI Shares has merely stalled what's coming in markets; it has not prevented it.

Billionaire investors had previously warned us about the severity of the US banking crisis in April, where he warned that the Worst is still to come and the world's largest economy is on the verge of deeper recession than anticipated.

According to the British Investor, The S&P 500, the index of top 500 companies trading in the US, can drop between 25%-30%. Stocks stand to lose somewhere between 27%, which can happen sometime in 2024.

Recent Interview:

In the interview, Jeremy Grantham said, "We have a year or two barely to have a sufficiently traditional bubble losing air, a fairly traditional recession, and comparatively traditional decline in profit margins and some grief in the stock market. And we should do that before the real effects of AI come into effect," Grantham warned.

The worrying part is that the prediction shows a correction at the scale like the 1929 crisis, 2000 crisis & 2021, these are the three senior bubbles in the stock market, and they had wiped out billions of dollars from the market.

In the Middle of Difficulty Lies Opportunity. -Albert Einstein.

Thus, If this prediction comes true, Our advice is to invest cautiously now. Keep some capital fixed in liquid forms, whereas your money is gaining at least enough to beat inflation, and you can have cash ready when the market drops and take advantage of the crisis.

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Olivia Johnson 06 Jul, 2023

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