Jeremy Grantham - A Historic Market Bubble – [Invest Like the Best, EP.214]
My guest today is Jeremy Grantham. Jeremy is the Long-Term Investment Strategist and Co-Founder at GMO. Jeremy has an encyclopedic knowledge of the history of markets, which made it such a pleasure to have him back on the show. In this conversation, we discuss the three key signs of a bubble, why Jeremy believes we are in a bubble right now and how it’s being led by retail rather than institutional investors. We close with the important role that demographics and productivity will play over the next few decades across the world. Please enjoy my conversation with Jeremy Grantham.
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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[00:03:03] - [First question] - His view on the markets today
[00:03:07] - Jeremy Grantham’s Podcast Episode
[00:08:00] - Proliferation of SPAC’s and how he views them as a potential bubble
[00:10:20] - Could SPAC’s help to improve the IPO process
[00:14:30] - How he viewed the Gamestop story through his historical context
[00:18:24] - Is investor education possible
[00:19:50] - How the increasing role of retail investors impacts bubbles
[00:24:15] - Attitudes towards market bears in bubbles
[00:28:52] - Long term view on the economy and the forces pushing it higher
[00:41:50] - Returning to a hard money standard for the US economy
[00:49:39] - Would a finite supply of money change market trajectory
[00:51:02] - Best ways to improve the infrastructure of the economy and people’s willingness to work
[00:53:52] - What should one do if they believe we are in a bubble
[00:58:14] - What he is excited about in his green investments
[01:02:28] - Advice to young investors