Grantham Warns Stocks in 'Superbubble,' Expects Market Decline Despite Wall Street Optimism
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Jeremy Grantham warns that stocks are in a "superbubble" and expects a substantial market decline soon.
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Grantham says humans are an "optimistic species" which makes us bad at spotting bubbles in real-time. Extreme optimism isn't prudent.
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Wall Street strategists rarely warn about bubbles because being bearish is bad for business.
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Short-sightedness is a human trait that makes us focus on immediate gains over long-term risks.
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As other strategists turn more bullish, Grantham is sticking to his warning that this is misguided optimism.