Jeremy Grantham, famed investor with a history of calling bear markets, issued a bearish long-term outlook for the stock market on Tuesday, seeing the dramatic rally in artificial intelligence-related stocks as a speculative bubble.
He foresaw the dot-com bubble bursting in 2000 and the 2008 bear market, and he also correctly called the bear market in 2022.
The S & P 500 has rallied since late October 2023 to hit consecutive record highs, powered by megacap technology names.
Dominant AI chipmaker Nvidia has rallied another 81% this year, following a near 240% advance in 2023.
Grantham, now 85, believes the full effects of technological revolutions like AI often don't materialize until after an initial bubble bursts.
Persons:
Jeremy Grantham, Grantham, Van Otterloo
Organizations:
Co, Nvidia
Locations:
Boston, Grantham, Mayo