Grantham Warns Superbubble in Markets Headed for Burst

Jeremy Grantham warns that the "superbubble" in asset prices is likely to burst, leading to a painful recession. He believes financial markets are in a bubble even bigger than past ones like the 1929 crash.

Grantham touches on meme stocks, SPACs, crypto, NFTs and other speculative assets driving a "crazy" market in 2021. He thinks the bubble distorts the system and will eventually revert back to the mean.

The legendary investor discusses housing unaffordability, income inequality, the stock option culture enriching executives, and the financial hardship much of the population now faces.

Grantham states the Fed has too many responsibilities and its policies of cheap money have been detrimental to sections of society like retirees.

Though critical of excessive compensation, Grantham defends the capitalism enabling entrepreneurs like Elon Musk to found firms and retain wealth generated.