Jeremy Grantham Believes the US Has Seen A Major Super Bubble across multiple asset classes - Stock Market, Housing, Bonds and Commodities.
https://www.gmo.com/australia/research-library/let-the-wild-rumpus-begin/
If this is indeed a super bubble, we are in a massive pain ahead as the excesses and wild speculation from the bubble cause the fall to be longer and deeper than most expect.Speculative madness examples of why Granthams believes we're in the final stages of this current super bubble:The meme stock madness of GME and AMC – two companies in declining industries further decimated by Covid-19 – that managed to rally 120x and 38x, respectively, from their post-pandemic lows to their 2021 highs, driven by message board sentiment, taking GME briefly to 20% of the entire Russell 2000;The digital coin phase, in which a coin conceived as a parody of the digital coin craze went up nearly 300x, to a market cap of $90 billion because Elon Musk kept joking about it; andLa pièce de résistance: after Hertz (one of 2020’s meme stock stars) saw a quick stock surge from announcing it would purchase a fleet of Teslas, Avis rather plaintively said something like, “Hey dudes, we might buy electric cars too,” and tripled in a day!
Gold price is holding up very nicely and is on the cusp of an upwards breakout. Has the rotation away from equities/crypto and into precious metails begun???
The Australian dollar gold price is looking even better:
So batten down the hatches, I think we're in for a wild ride!
