Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Markets

Legendary investor Jeremy Grantham says Biden’s $1.9 trillion stimulus plan will…

1 month ago
in Markets
3 min read
Legendary investor Jeremy Grantham says Biden’s $1.9 trillion stimulus plan will…
Share on FacebookShare on Twitter


Jeremy Grantham

Matthew Lloyd/Getty Images for ReSource 2012


Legendary investor Jeremy Grantham warned investors during a Bloomberg interview that the $1.9 trillion in federal aid President Joe Biden is seeking from Congress will further inflate the stock market bubble.

The GMO co-founder told Erik Schatzker that he has “no doubt” some of the stimulus aid will end up in the market. He said the “sad truth” about the last stimulus bill passed in 2020 was that it didn’t increase capital spending and didn’t increase real production, but it certainly flowed into stocks. 

The plan that Biden is proposing contains a $1,400 boost to stimulus checks, robust state and local aid, and vaccine-distribution funds. Grantham said that if the package passed is worth $1.9 trillion, it could lead to the dangerous end of the bubble.  

“If it’s as big as they talk about, this would be a very good making of a top for the market, just of the kind that the history books would enjoy,” said Grantham.

“We will have a few weeks of extra money and a few weeks of putting your last, desperate chips into the game, and then an even more spectacular bust,” he added. 

Read more: A notorious market bear who called the dot-com bubble says he sees ‘fresh deterioration’ in the market indicator that first signaled the 1929 and 1987 crashes – and warns that stocks are ripe for a 70% drop

Grantham has long-warned of the ballooning bubble he sees in the US stock market. In his investor outlook letter in the beginning of January, he detailed how extreme overvaluations, explosive price increases, frenzied issuance, and “hysterically speculative investor behavior” all demonstrate that the stock market is in a bubble that not even the Fed can stop from bursting.

“When you have reached this level of obvious super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years,” Grantham told Bloomberg.

Grantham also said that the combination of fiscal stimulus and emergency Fed programs that helped inflate the bubble could increase inflation.

“If you think you live in a world where output doesn’t matter and you can just create paper, sooner or later you’re going to do the impossible, and that is bring back inflation,” Grantham said. “Interest rates are paper. Credit is paper. Real life is factories and workers and output, and we are not looking at increased output.”

He told investors to seek out stocks outside of US markets, as many other countries haven’t seen the huge bull market the US has. He called emerging markets stocks “handsomely priced.”

“You will not make a handsome 10- or 20-year return from U.S. growth stocks,” said Grantham. “If you could do emerging, low-growth and green, you might get the jackpot.”

Read more: GOLDMAN SACHS: These 22 stocks still haven’t recovered to pre-pandemic levels – and are set to explode amid higher earnings in 2021 as the economy recovers



Go to the news source: Legendary investor Jeremy Grantham says Biden’s $1.9 trillion stimulus plan will…

Tags: BidensGranthamInvestorJeremyLegendaryplanStimulusTrillion
Previous Post

Ultra-rare alien CryptoPunk NFT sells for 605 ETH, or $750,000 By Cointelegraph

Next Post

Did the Facebook app force log you out, too?

Related Posts

Tesla’s Inclusion in the S&P 500 Leaves Less Room for Some Sectors
Markets

SPACs Are Red Hot. Why That Could Spell Trouble.

by Forex News
March 6, 2021
0

This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by...

Read more
Tesla Facing $250 Billion Market Cap Loss On Rates, Bitcoin
Markets

Tesla Facing $250 Billion Market Cap Loss On Rates, Bitcoin

by Forex News
March 5, 2021
0

Tesla Inc.  (TSLA) - Get Report shares traded lower again Friday, potentially extending a move that has loped nearly $250...

Read more
Reflation trades in FX markets expected to continue in March: Reuters poll
Markets

Reflation trades in FX markets expected to continue in March: Reuters poll

by Forex News
March 4, 2021
0

BENGALURU (Reuters) - The reflation trade that spooked currency markets and threw them into disarray will be in play...

Read more
Treasury bond wobble heightens concerns over health of $21tn market
Markets

Treasury bond wobble heightens concerns over health of $21tn market

by Forex News
March 3, 2021
0

The severity of last week’s US government bond sell-off has rekindled concerns about the health of the world’s largest...

Read more
Live Foreign Currency Exchange Rates
Markets

China fears overseas market ‘bubble’; German exports to UK down 30% in January –…

by Forex News
March 2, 2021
0

According to the German labour agency, new applications for short-time work schemes dropped somewhat in February to 500,000. This...

Read more
Live Foreign Currency Exchange Rates
Markets

Global stocks bounce back; UK and US factories suffer supply-chain woes – as it …

by Forex News
March 1, 2021
0

The S&P 500 on Monday was headed for its best day since June 5 as bond markets calmed after...

Read more
Asian stocks bounce as bond market calms
Markets

Asian stocks bounce as bond market calms

by Forex News
March 1, 2021
0

SYDNEY (Reuters) - Asian shares firmed on Monday as some semblance of calm returned to bond markets after last...

Read more
Staying private: the booming market for shares in the hottest start-ups
Markets

Staying private: the booming market for shares in the hottest start-ups

by Forex News
February 28, 2021
0

In 2014, an Austrian entrepreneur offered investors a rare chance to purchase shares in Jumio, his fast-growing and profitable...

Read more
3 Reasons the Stock Market Could Crash in the Next 3 Months
Markets

3 Reasons the Stock Market Could Crash in the Next 3 Months

by Forex News
February 27, 2021
0

Despite a global pandemic and historic volatility over the past year, investors have a lot to be thankful for....

Read more
Warren Buffett’s favorite stock market indicator still screams sell
Markets

Warren Buffett’s favorite stock market indicator still screams sell

by Forex News
February 26, 2021
0

TipRanks2 ‘Strong Buy’ Stocks With 7% Dividend YieldYou can get whiplash, trying to follow the market fluctuations these days....

Read more
Next Post
Did the Facebook app force log you out, too?

Did the Facebook app force log you out, too?

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

This Energy Sector Will See The Next Big M&A Wave

This Energy Sector Will See The Next Big M&A Wave

6 days ago
Garcetti won’t serve in Biden administration

Garcetti won’t serve in Biden administration

3 months ago
Live Foreign Currency Exchange Rates

‘It feels like a placebo’: Mexico’s vaccine program sees disastrous launch | Glo…

4 weeks ago
Grindr Fined in Europe Over Sharing of User Data: Live Business Updates

Grindr Fined in Europe Over Sharing of User Data: Live Business Updates

1 month ago

Today Market News

Is Beyond International (ASX:BYI) Weighed On By Its Debt Load?
Live

Things Look Grim For Live Nation Entertainment, Inc. (NYSE:LYV) After Today’s Do…

March 6, 2021
What the future holds for Exxon
Economy

What the future holds for Exxon

March 6, 2021
Unemployed Kansan owes more than $11K in benefits after getting overpayment lett…
Economy

Unemployed Kansan owes more than $11K in benefits back after getting overpayment…

March 6, 2021
Rising seas: A failure of economics to cut greenhouse emissions | Counting the C…
Economy

Rising seas: A failure of economics to cut greenhouse emissions | Counting the C…

March 6, 2021
The pope and the ayatollah: Francis meets Iraq’s Sistani
World

The pope and the ayatollah: Francis meets Iraq’s Sistani

March 6, 2021
Senate extends unemployment benefit in bill
Economy

Senate extends unemployment benefit in bill

March 6, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz