Jeremy Grantham: Sure Signs That This Market Breakdown Is The Real McCoy

In his recent interview with Bridgewater Associates, Jeremy Grantham discusses the sure signs that this market breakdown is the real McCoy. Here’s an excerpt from the interview:

Grantham: I must say I’m… in my old age reaching a point where I have a little trouble convincing myself that the stock market is that important and that we live in an age where some much more important issues are playing out, and I know Ray [Dalio] shares that view to some considerable degree.

I view the stock market now really as a hobby, and the one thing that I have kept going is resources and climate change related investing, and also for old times sake, investment bubbles.

Since I’ve been doing that for 40 or 50 years and since I find myself unexpectedly in the third great investment bubble of my career, basically in the U.S, so I can’t avoid it.

This is a wonderful day to be having this discussion, it’s not only victory over Hitler in Russia day but it’s also a day where the market is showing signs of breaking down, through yesterday it’s the worst opening of a year for the S&P since I was one year old in 1939.

I am a pre-war baby unlike Ray, and of course the Nasdaq is down as we speak 27 and a half percent from its high, and the Russell 2000 about 23, S&P about fifteen and a half, so it’s getting to be interesting and as we were saying before Bitcoin from some point in the last 24 hours is down 10% to 32,000 and change, so that is getting interesting.

ARKK, Kathy Wood’s wonderful instrument is back to where it was in 2018, I’m not kidding. It is back below this entire event now which is quite remarkable, down 75% from its peak, as is AMC down 75% from its peak, and the other meme stocks are in ragged disarray.

So this is the real McCoy seems to be playing out pretty close to 2000.

You can watch the entire discussion here: