Uploaded February 2021 | Updated September 2026, 1 hour ago
See My Portfolio & Where Opportunity Is In The Market (Discount): theinvestingacademy.teachable.com/p/theinvestingacademy?coupon_code=SALE&product_id=4455382
In this video we explain Jeremy Grantham's opinion on the "fully fledged epic bubble" that is the stock market and why these conditions are similar to 1929 / 2000.
š Chapters š
00:00 - Grantham's thoughts on the market
01:20 - Signs of a market bubble: OTC trading
02:30 - Signs Of A Market Bubble: Euphoria based investing
02:53 - Free money pumping up the stock market
04:18 - Fiscal & Monetary Policy Adding To The Bubble (a bad recipe).
06:09 - The Stock Market does not reflect reality
08:43 - The FED no longer has the power to prevent the crash
__________________________________
Jeremy Grantham, heās a value investor, heās a student of market bubbles & heās the chief investment strategist of GMO, the investing firm with over $118 billion of assets under management.
He normally doesnāt do that many interviews, however recently he went on Bloomberg finance with some pretty stern things to sayā¦
The bull market that started in March 2009, the longest bull market in history has matured into a speculative fever of rare proportions.
He said āIt is a fully fledged epic bubbleā. āPut it this way. When you have reached this level of obvious super enthusiasm, the bubble has always without exception broken in the next few months, not a few years. You canāt maintain this level of near ecstasy it canāt be done, because youāve put in your last dollar. You are all in. What are you supposed to do beyond that point? You canāt borrow any more money. You canāt take any more riskā. āHow do you keep that level of enthusiasm going indefinitely?ā.
The answer is you canāt. Just like when you drink alcohol or coffee the high has to turn to a low, and the exact same thing will happen with the market.
You know youāve got many different signs that point to a bubble. One of those signs that Grantham talks about is the amount of trading going on.
He said āif you want a crazy example (of a sign), & you need crazy by the way thatās the best timing for a bubble top is crazy behavior. You look at the over-the-counter trading. I was a big over the counter trader in a speculative bubble of 1969. So last February it traded about 80 million shares for the month and it worked its way steadily through the year until November, (then) it got to around 380, so it had gone up four times. And then in December it went to 1.15 trillion shares for the month. Having tripled, it then tripled again in a single month! These are spectacular performances!ā
So what weāre seeing is more and more traders entering the market looking to make a quick buck. As Grantham said, over 10 times more trades were placed at the end of 2020 compared to the start.
This is a signal of greed. Even more than greed itās a signal of euphoria slash delusion. Everyoneās making money in the stock market, letās all join in, letās all do the same thing, I donāt want to miss out, and this pushes prices higher and higher. But always remember what follows greed, and the ānew paradigmā, is denial, then fear, then capitulation.
And one of the things that is causing this euphoria in the market is this free money that everyone seems to be getting. Hereās what Grantham said āthe sad truth of a lot of the quote stimulus, is that it didnāt increase capital spending. It didnātā increase much in the way of real production, but it flowed a lot of it eventually into the market one way or the other. And I have no doubt some of this new round of stimulus will and if itās as big as they talk about, this would be a very good making of a top for the market, just of the kind that the history books would enjoy. We will have a few weeks of extra money and a few weeks of putting your last desperate chips into the game and then an even more spectacular bustā.
Subscribe Here: bit.ly/2Y1kNq8
___
DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. This video was made for educational and entertainment purposes only. Consult your financial adviser. * Some of the links on this webpage are affiliate links. This means at no additional cost to you, we earn a commission if you click through and make a purchase and/or subscribe. This has no impact on my opinions, facts or style of video.
See My Portfolio & Where Opportunity Is In The Market (Discount): theinvestingacademy.teachable.com/p/theinvestingacademy?coupon_code=SALE&product_id=4455382
In this video we explain Jeremy Grantham's opinion on the "fully fledged epic bubble" that is the stock market and why these conditions are similar to 1929 / 2000.
š Chapters š
00:00 - Grantham's thoughts on the market
01:20 - Signs of a market bubble: OTC trading
02:30 - Signs Of A Market Bubble: Euphoria based investing
02:53 - Free money pumping up the stock market
04:18 - Fiscal & Monetary Policy Adding To The Bubble (a bad recipe).
06:09 - The Stock Market does not reflect reality
08:43 - The FED no longer has the power to prevent the crash
__________________________________
Jeremy Grantham, heās a value investor, heās a student of market bubbles & heās the chief investment strategist of GMO, the investing firm with over $118 billion of assets under management.
He normally doesnāt do that many interviews, however recently he went on Bloomberg finance with some pretty stern things to sayā¦
The bull market that started in March 2009, the longest bull market in history has matured into a speculative fever of rare proportions.
He said āIt is a fully fledged epic bubbleā. āPut it this way. When you have reached this level of obvious super enthusiasm, the bubble has always without exception broken in the next few months, not a few years. You canāt maintain this level of near ecstasy it canāt be done, because youāve put in your last dollar. You are all in. What are you supposed to do beyond that point? You canāt borrow any more money. You canāt take any more riskā. āHow do you keep that level of enthusiasm going indefinitely?ā.
The answer is you canāt. Just like when you drink alcohol or coffee the high has to turn to a low, and the exact same thing will happen with the market.
You know youāve got many different signs that point to a bubble. One of those signs that Grantham talks about is the amount of trading going on.
He said āif you want a crazy example (of a sign), & you need crazy by the way thatās the best timing for a bubble top is crazy behavior. You look at the over-the-counter trading. I was a big over the counter trader in a speculative bubble of 1969. So last February it traded about 80 million shares for the month and it worked its way steadily through the year until November, (then) it got to around 380, so it had gone up four times. And then in December it went to 1.15 trillion shares for the month. Having tripled, it then tripled again in a single month! These are spectacular performances!ā
So what weāre seeing is more and more traders entering the market looking to make a quick buck. As Grantham said, over 10 times more trades were placed at the end of 2020 compared to the start.
This is a signal of greed. Even more than greed itās a signal of euphoria slash delusion. Everyoneās making money in the stock market, letās all join in, letās all do the same thing, I donāt want to miss out, and this pushes prices higher and higher. But always remember what follows greed, and the ānew paradigmā, is denial, then fear, then capitulation.
And one of the things that is causing this euphoria in the market is this free money that everyone seems to be getting. Hereās what Grantham said āthe sad truth of a lot of the quote stimulus, is that it didnāt increase capital spending. It didnātā increase much in the way of real production, but it flowed a lot of it eventually into the market one way or the other. And I have no doubt some of this new round of stimulus will and if itās as big as they talk about, this would be a very good making of a top for the market, just of the kind that the history books would enjoy. We will have a few weeks of extra money and a few weeks of putting your last desperate chips into the game and then an even more spectacular bustā.
Subscribe Here: bit.ly/2Y1kNq8
___
DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. This video was made for educational and entertainment purposes only. Consult your financial adviser. * Some of the links on this webpage are affiliate links. This means at no additional cost to you, we earn a commission if you click through and make a purchase and/or subscribe. This has no impact on my opinions, facts or style of video.
