economy
Jeremy Grantham says this is the most expensive market in 'American history'
Jeremy Grantham says soaring valuations around AI makes the U.S. stock market historically expensive.
TL;DR
- Jeremy Grantham states the U.S. stock market is the most expensive in American history, using market capitalization to GDP ratio as an indicator.
- He likens the current situation to the dot-com bubble of 2000 and warns of a potential historic decline.
- Grantham views SpaceX's high valuation as a sign of excessive market enthusiasm, potentially signaling a market peak.
- He notes that even after past dire warnings, stocks have continued to advance, but the long-term outlook remains concerning.
- Grantham acknowledges that while a crash is likely, companies like Amazon eventually inherited the market after significant drops.