Posted 3/12/2024, 7:37:00 PM
Grantham: AI Frenzy Has Delayed Burst of COVID Stimulus Bubble, But Crash Still Coming
- Grantham argues the AI stock frenzy has temporarily delayed bursting of the 2021 COVID stimulus bubble
- He says 2021 had signs of a bubble peaking - investor euphoria, IPO rush, speculative leaders declining
- The S&P saw its biggest 1st half decline since 1939 before AI "bubble within a bubble" paused burst
- AI potential is huge but, like past tech revolutions, full potential comes after initial bubble pops
- Once AI bubble starts deflating, the broader market bubble will likely follow, ending in recession