Legendary investor Jeremy Grantham warns that U.S. equities are in the biggest bubble in American history, driven by artificial intelligence high flyers, and a 70% price decline is possible. He points to indicators of crazy euphoria such as SpaceX defining its addressable market as a quarter of global GDP, calling it a classic market peak. Grantham advises average investors to diversify by holding 60% in a broad-based index of non-U.S. equities, 5% to 10% in precious metals like gold and silver, some real estate if sensible, and the rest in bonds. He cautions that a bubble burst would lead to layoffs, reduced spending, and tough economic times.
Apple Inc.
Amazon.com Inc
Alphabet Inc Class C
Microsoft Corporation
NVIDIA Corporation
Meta Platforms Inc.
Tesla Inc