Invest Like The Best
Episode 214 A Historic Market Bubble
Invest Like The Best

Episode 214: A Historic Market Bubble

Invest Like The Best

Episode 214

A Historic Market Bubble

Jeremy Grantham is the Long-Term Investment Strategist and Co-Founder at GMO. We cover 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.

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[00:03:03] - [First question] - His view on the markets today 

[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 

A Historic Market Bubble

Introduction

Patrick
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 discussed the three key signs of a market bubble, why Jeremy believes we're 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.

Today's Market Bubble

Patrick
So Jeremy, I've been excited to do this with you again. The last time we spoke in early July of last year, we were still in the throes of the early stages of the pandemic, and the market was about 35% below where it sits today. Not a whole ton has improved about the economy, the market has done quite well. And the topic of our conversation today, I think is going to be your view on the state of this equity market, and its potential to be in the bubble category with some of the great bubbles that you've studied as a market historian. So to begin, I would just love to hear your broad market perspective, through what lenses you're viewing this market and what history might teach us.

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