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US stocks are heavily overvalued, a recession is coming, and AI is overhyped, Jeremy Grantham said.
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Stocks would have plunged another 20% or 30% in 2023 if not for the AI craze, the investor said.
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Grantham said he’s worried about foreign wars, especially when asset prices are at record highs.
Stocks are absurdly expensive and likely to struggle, artificial intelligence is a bubble destined to burst, and the economy will suffer a minor recession or worse, Jeremy Grantham has warned.
The cofounder and long-term strategist of fund manager GMO recommended avoiding US stocks in a recent ThinkAdvisor interview. “They’re almost ridiculously higher priced than the rest of the world,” he said.
“The stock market will have a tough year,” he continued. American companies’ profit margins are at historic highs relative to foreign rivals, creating a “double…
