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Investing Legend Sees "Spectacular" Crash In "The Next Few Months"

Jack

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Joined
Oct 30, 2018
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3,966
Two weeks ago, investing icon Jeremy Grantham turned apocalyptic and warned that the "Bursting Of This "Great, Epic Bubble" Will Be "Most Important Investing Event Of Your Lives." Since then the market has generally continued to melt up, yet Grantham's conviction that all this will end in tears has only grown, and in an interview with Bloomberg today, the co-founder of GMO who correctly called the last two crashes, now predicts that Joe Biden’s economic-recovery plan will propel stocks to perilous new heights, followed by an inevitable crash.

“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,” the value-investing legend said in a Bloomberg “Front Row” interview.

“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.”

Amid market euphoria the likes of which have - literally - never been seen before as the following chart from Citi shows...
euphoria%20model_4.jpg

... and which prompted Citi, BofA and Goldman to all warn that a selloff appears imminent, and which was fueled by risk-taking behavior funded by the latest round of pandemic-relief checks, Grantham has “no doubt” at least some of the $1.9 trillion in federal aid Biden is seeking from Congress will end up being spent on stocks instead of food or shelter.

While that will help push stocks even higher, Grantham then sees it all ending in tears, or rather a collapse rivaling the 1929 crash or the dot-com bust of 2000, when the Nasdaq cratered 80% before recovering thanks to trillions more in Fed "stimmy" checks.

And while some (increasingly fewer) investors claim that today’s valuations are justified by the growth potential of transformative technologies and new business models, Grantham, 82, dismisses that argument as fanciful, and rejects the popular theory that the Federal Reserve can cushion or even the next crash with even more QE or easing.

“At the lowest rates in history, you don’t have a lot in the bank to throw on the table, do you?” he said.

Unfortunately for Grantham, and his now cemented reputation as a perma-bear who misses out on rallies, the stock market has sneered at all warnings it will crash and just keeps on rising.

To be sure, as we reported last year, GMO’s bearish stance has been costly as assets under management fell by tens of billions of dollars during the decade-long bull market, as the firm steered clear of growth stocks. Then in April, GMO doubled down, insulating its portfolios from directional bets on the market and largely missing out on the second leg of the 2020 rebound.

As Bloomberg notes, Grantham thought the economy was on shaky ground even before the pandemic and he was concerned about the steady decline in U.S. productivity, warning that the Fed had only succeeded in blowing out the inequality and income gap to record wides, amid worries that the profit-at-all-costs nature of American capitalism was destroying the environment and fraying the social fabric.

For Grantham, the combination of fiscal stimulus and emergency Fed programs led to “spectacular excesses” and pushed an already overvalued market into bubble territory.

Echoing BofA's earlier note, Grantham believes that the Fed's "Immoral hazard" will have other devastating consequences as well:

“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.”

As a reminder, earlier today, BofA's CIO Michael Hartnett - who is similarly concerned about the near-future - warned that asset price (hyper)inflation will eventually drag Main Street inflation higher, risking a disorderly rise in bond yields, which results in a taper tantrum, tighter financial conditions and "volatility events", i.e., a market crash.

Grantham agrees and warns that the threat of inflation is the biggest risk, which is why he also thinks that bonds are risky. He also has reservations about gold because it generates no income. And in his view Bitcoin is make-believe nonsense.

In short, he is an asset manager who sees no attractive assets, and who is prohibited from shorting because the Fed will just keep ramping prices ever higher.

While selling everything and holding cash is one option, Grantham said his best advice for long-term investors is to focus on low-growth stocks that are cheap relative to benchmark indexes, emerging markets and companies fighting climate change with renewable energy and electric-car technology.

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

Source
https://www.zerohedge.com/markets/investing-legend-sees-spectacular-crash-next-few-months

It's all going down and this Time it will, because they want it to go down (and burn) so they can create their new one world cryptocurrency economy.
 
Blitzkreig said:
Jack said:

I've being seeing quite a lot this recently. Makes me want to convert 80% of my assets into gold bars and coins, silver, food, ammo, other prepping gear.
I'm going to get everything out in the first week of march. I suspect after the second week it will go downhill
 
Jack said:
Two weeks ago, investing icon Jeremy Grantham turned apocalyptic and warned that the "Bursting Of This "Great, Epic Bubble" Will Be "Most Important Investing Event Of Your Lives." Since then the market has generally continued to melt up, yet Grantham's conviction that all this will end in tears has only grown, and in an interview with Bloomberg today, the co-founder of GMO who correctly called the last two crashes, now predicts that Joe Biden’s economic-recovery plan will propel stocks to perilous new heights, followed by an inevitable crash.

“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,” the value-investing legend said in a Bloomberg “Front Row” interview.

“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.”

Amid market euphoria the likes of which have - literally - never been seen before as the following chart from Citi shows...
euphoria%20model_4.jpg

... and which prompted Citi, BofA and Goldman to all warn that a selloff appears imminent, and which was fueled by risk-taking behavior funded by the latest round of pandemic-relief checks, Grantham has “no doubt” at least some of the $1.9 trillion in federal aid Biden is seeking from Congress will end up being spent on stocks instead of food or shelter.

While that will help push stocks even higher, Grantham then sees it all ending in tears, or rather a collapse rivaling the 1929 crash or the dot-com bust of 2000, when the Nasdaq cratered 80% before recovering thanks to trillions more in Fed "stimmy" checks.

And while some (increasingly fewer) investors claim that today’s valuations are justified by the growth potential of transformative technologies and new business models, Grantham, 82, dismisses that argument as fanciful, and rejects the popular theory that the Federal Reserve can cushion or even the next crash with even more QE or easing.

“At the lowest rates in history, you don’t have a lot in the bank to throw on the table, do you?” he said.

Unfortunately for Grantham, and his now cemented reputation as a perma-bear who misses out on rallies, the stock market has sneered at all warnings it will crash and just keeps on rising.

To be sure, as we reported last year, GMO’s bearish stance has been costly as assets under management fell by tens of billions of dollars during the decade-long bull market, as the firm steered clear of growth stocks. Then in April, GMO doubled down, insulating its portfolios from directional bets on the market and largely missing out on the second leg of the 2020 rebound.

As Bloomberg notes, Grantham thought the economy was on shaky ground even before the pandemic and he was concerned about the steady decline in U.S. productivity, warning that the Fed had only succeeded in blowing out the inequality and income gap to record wides, amid worries that the profit-at-all-costs nature of American capitalism was destroying the environment and fraying the social fabric.

For Grantham, the combination of fiscal stimulus and emergency Fed programs led to “spectacular excesses” and pushed an already overvalued market into bubble territory.

Echoing BofA's earlier note, Grantham believes that the Fed's "Immoral hazard" will have other devastating consequences as well:

“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.”

As a reminder, earlier today, BofA's CIO Michael Hartnett - who is similarly concerned about the near-future - warned that asset price (hyper)inflation will eventually drag Main Street inflation higher, risking a disorderly rise in bond yields, which results in a taper tantrum, tighter financial conditions and "volatility events", i.e., a market crash.

Grantham agrees and warns that the threat of inflation is the biggest risk, which is why he also thinks that bonds are risky. He also has reservations about gold because it generates no income. And in his view Bitcoin is make-believe nonsense.

In short, he is an asset manager who sees no attractive assets, and who is prohibited from shorting because the Fed will just keep ramping prices ever higher.

While selling everything and holding cash is one option, Grantham said his best advice for long-term investors is to focus on low-growth stocks that are cheap relative to benchmark indexes, emerging markets and companies fighting climate change with renewable energy and electric-car technology.

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

Source
https://www.zerohedge.com/markets/investing-legend-sees-spectacular-crash-next-few-months

It's all going down and this Time it will, because they want it to go down (and burn) so they can create their new one world cryptocurrency economy.

Blitzkreig said:
Jack said:

I've being seeing quite a lot this recently. Makes me want to convert 80% of my assets into gold bars and coins, silver, food, ammo, other prepping gear.

I am a bit confused. What exactly will happen? All the money from my bank account will be gone if the bank closes? If the bank doesn't close, will I still lose my money? What countries will be affected? Or does the whole world will suffer?

Does this affect "Fixed Deposits"?

I don't understand how serious this will be, I mean I know this is serious but I don't have the idea of how bad it is going to be. Can you guys explain the things that will happen? possible mass hunger or deaths? something like that?

And are we sure this will 100% happen this year?

Please do answer these if you have the time. I don't have much money in my bank account but I would warn my dad who has some good amount of Fixed Deposit.
 
Don't pretend to be certain about these things and distributed news about it.

Because "Economic Crashes" are happening all the time. Oftentimes, it's logistics, and does not affect people or how they live.

The economy has been crashed for about more than a decade now. An upcoming crisis of joblessness, closed businesses, is already here. This will intensify in the next months.
 
Nikois666 said:
Jack said:
Two weeks ago, investing icon Jeremy Grantham turned apocalyptic and warned that the "Bursting Of This "Great, Epic Bubble" Will Be "Most Important Investing Event Of Your Lives." Since then the market has generally continued to melt up, yet Grantham's conviction that all this will end in tears has only grown, and in an interview with Bloomberg today, the co-founder of GMO who correctly called the last two crashes, now predicts that Joe Biden’s economic-recovery plan will propel stocks to perilous new heights, followed by an inevitable crash.

“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,” the value-investing legend said in a Bloomberg “Front Row” interview.

“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.”

Amid market euphoria the likes of which have - literally - never been seen before as the following chart from Citi shows...
euphoria%20model_4.jpg

... and which prompted Citi, BofA and Goldman to all warn that a selloff appears imminent, and which was fueled by risk-taking behavior funded by the latest round of pandemic-relief checks, Grantham has “no doubt” at least some of the $1.9 trillion in federal aid Biden is seeking from Congress will end up being spent on stocks instead of food or shelter.

While that will help push stocks even higher, Grantham then sees it all ending in tears, or rather a collapse rivaling the 1929 crash or the dot-com bust of 2000, when the Nasdaq cratered 80% before recovering thanks to trillions more in Fed "stimmy" checks.

And while some (increasingly fewer) investors claim that today’s valuations are justified by the growth potential of transformative technologies and new business models, Grantham, 82, dismisses that argument as fanciful, and rejects the popular theory that the Federal Reserve can cushion or even the next crash with even more QE or easing.

“At the lowest rates in history, you don’t have a lot in the bank to throw on the table, do you?” he said.

Unfortunately for Grantham, and his now cemented reputation as a perma-bear who misses out on rallies, the stock market has sneered at all warnings it will crash and just keeps on rising.

To be sure, as we reported last year, GMO’s bearish stance has been costly as assets under management fell by tens of billions of dollars during the decade-long bull market, as the firm steered clear of growth stocks. Then in April, GMO doubled down, insulating its portfolios from directional bets on the market and largely missing out on the second leg of the 2020 rebound.

As Bloomberg notes, Grantham thought the economy was on shaky ground even before the pandemic and he was concerned about the steady decline in U.S. productivity, warning that the Fed had only succeeded in blowing out the inequality and income gap to record wides, amid worries that the profit-at-all-costs nature of American capitalism was destroying the environment and fraying the social fabric.

For Grantham, the combination of fiscal stimulus and emergency Fed programs led to “spectacular excesses” and pushed an already overvalued market into bubble territory.

Echoing BofA's earlier note, Grantham believes that the Fed's "Immoral hazard" will have other devastating consequences as well:

“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.”

As a reminder, earlier today, BofA's CIO Michael Hartnett - who is similarly concerned about the near-future - warned that asset price (hyper)inflation will eventually drag Main Street inflation higher, risking a disorderly rise in bond yields, which results in a taper tantrum, tighter financial conditions and "volatility events", i.e., a market crash.

Grantham agrees and warns that the threat of inflation is the biggest risk, which is why he also thinks that bonds are risky. He also has reservations about gold because it generates no income. And in his view Bitcoin is make-believe nonsense.

In short, he is an asset manager who sees no attractive assets, and who is prohibited from shorting because the Fed will just keep ramping prices ever higher.

While selling everything and holding cash is one option, Grantham said his best advice for long-term investors is to focus on low-growth stocks that are cheap relative to benchmark indexes, emerging markets and companies fighting climate change with renewable energy and electric-car technology.

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

Source
https://www.zerohedge.com/markets/investing-legend-sees-spectacular-crash-next-few-months

It's all going down and this Time it will, because they want it to go down (and burn) so they can create their new one world cryptocurrency economy.

Blitzkreig said:
Jack said:

I've being seeing quite a lot this recently. Makes me want to convert 80% of my assets into gold bars and coins, silver, food, ammo, other prepping gear.

I am a bit confused. What exactly will happen? All the money from my bank account will be gone if the bank closes? If the bank doesn't close, will I still lose my money? What countries will be affected? Or does the whole world will suffer?

Does this affect "Fixed Deposits"?

I don't understand how serious this will be, I mean I know this is serious but I don't have the idea of how bad it is going to be. Can you guys explain the things that will happen? possible mass hunger or deaths? something like that?

And are we sure this will 100% happen this year?

Please do answer these if you have the time. I don't have much money in my bank account but I would warn my dad who has some good amount of Fixed Deposit.
The stocks might crash as they did in the last economic crisis. Anyone having investments there might have their lives destroyed. They are planning to allow hyperinflation to happen so the money in the bank and fixed deposits will become essentially worthless.

According to the WEF ,they are planning to create a cryptocurrency type economy instead of fiat which they want to kill. But to do that they have to first transfer all the wealth from the middle class to the upper class, which is currently happening now.

All countries should be affected in some way ,unless if you live in already wealthy Nordic countries or countries that doesn't depend on the US dollar as a Global Reserve currency much. You can check out the deagel forecast for 2025 which shows which countries will be negatively affected and which not.
 
Nikois666 said:

Firstly, read HP Cobra's advice about the situation, posted below your message that I am replying to.

The timing of when any sort of hyperinflation scenario would crash (distinct from a simple recession) is of course up to debate and speculation. The banks and others still invested in the dollar are pretending it is less a problem then it really is, as to not cause panic.

This article and others point to sometime this year, based on the further debasement of the currency and investors' opinions of the market. If the currency is debased with more inflation and the economy is still not improving, then panic will start to occur. Currently, there is a false hope that Biden will save the economy, but I don't think any President has the ability alone.

However, as stated by the Great Reset plan, one aspect of the (((future))) is to have a digital currency for "security". They want to pair this with universal basic income and other control mechanisms. This requires them to get rid of the dollar, because if people could still use their saved dollars, they would not have a reason to go along with this plan.

------------------------------

If the dollar value crashes due to its fatal wounds, this would destroy the value of any wealth stored in dollars. The government would then have the opportunity to rush in and provide security, but in exchange you have to sign over certain rights. This could refer to privacy, medical freedoms, tracking, etc. Things nobody would sign up for unless they were in a panicked state to begin with.

It will not result in mass deaths in the sense of like an apocalypse, but it will result in a panic that will be taken advantage of. The same way they took advantage of people's fears after 9/11 to further restrict rights.

For what I think is an accurate judge of how to approach this, please refer to this post by HPS Maxine, made on March 2020. In it, is says that she was advised to prep 6 months worth of stuff. I don't know if this was referring solely to initial Covid panic and economic slump, or the further inflation that results.

What is not up to speculation is the value of the dollar and its continued decrease. Furthermore, data in that article or some others by Zerohedge mentions how the investor's are overly optimistic, setting the stage for a crash once panic sets in, after the economy doesn't recover.

Keeping in mind HP HC's advice, I would at least tell your dad to look into it himself and come up with a conclusion. Don't panic just yet, but certainly monitor the situation.
 
On all times, unless you live in a physically unsafe environment [banks are best in this case, to avoid robbery], never the entirety of your money or money savings should reside in banks. We still have cash, there are places of storage to go about this, and things you can buy that have solid value that increases over years [and will increase in case financial crash events occur].

You should have it in other forms, because bank deposits, if something happens, can become locked, worthless [fast hyperinflation, which is supposedly moderated, but still], or impossible to spend or withdraw. These things have happened in recent history.

When also countries crash [many will do so from Co-vid constant lending], even if it's only fiscal numbers, they may take a hit on the deposits of people, to justify that it is to pay outrageous debts. They do this in the form of full or partial confiscation.

If I am not wrong, this happened in Cyprus and Greece during the last decade. The assets and money were also entirely frozen [unable to be withdrawn] and people were only allowed to withdraw a small monthly amount only for their 'necessities', which was defined by the Governments of Cyprus and Greece.

Banks have no choice on these matters and they can be forced into submission to do this. Fixed deposits and other similar things, are among the easiest targets to prey upon during adverse times where the State owes.

During times of normalcy, fixed deposits can be a no brainer and a good choice, because instead of money sitting idle and stationary, it produces more of itself, giving you passive income.
 
HP. Hoodedcobra666 said:
On all times, unless you live in a physically unsafe environment [banks are best in this case, to avoid robbery], never the entirety of your money or money savings should reside in banks. We still have cash, there are places of storage to go about this, and things you can buy that have solid value that increases over years [and will increase in case financial crash events occur].

You should have it in other forms, because bank deposits, if something happens, can become locked, worthless [fast hyperinflation, which is supposedly moderated, but still], or impossible to spend or withdraw. These things have happened in recent history.

When also countries crash [many will do so from Co-vid constant lending], even if it's only fiscal numbers, they may take a hit on the deposits of people, to justify that it is to pay outrageous debts. They do this in the form of full or partial confiscation.

If I am not wrong, this happened in Cyprus and Greece during the last decade. The assets and money were also entirely frozen [unable to be withdrawn] and people were only allowed to withdraw a small monthly amount only for their 'necessities', which was defined by the Governments of Cyprus and Greece.

Banks have no choice on these matters and they can be forced into submission to do this. Fixed deposits and other similar things, are among the easiest targets to prey upon during adverse times where the State owes.

During times of normalcy, fixed deposits can be a no brainer and a good choice, because instead of money sitting idle and stationary, it produces more of itself, giving you passive income.
They closed Donald Trump's bank accounts in some banks. This can happen to any Trump supporter in the future where they ((private)) companies can just refuse service to people they don't like. This is just totally insane.
 
Nikois666 said:
I am a bit confused. What exactly will happen? All the money from my bank account will be gone if the bank closes? If the bank doesn't close, will I still lose my money? What countries will be affected? Or does the whole world will suffer?

Does this affect "Fixed Deposits"?

I don't understand how serious this will be, I mean I know this is serious but I don't have the idea of how bad it is going to be. Can you guys explain the things that will happen? possible mass hunger or deaths? something like that?

And are we sure this will 100% happen this year?

Please do answer these if you have the time. I don't have much money in my bank account but I would warn my dad who has some good amount of Fixed Deposit.

Due to inflation every day that your money sitting in the bank it is losing value and becoming worthless with less purchasing power which is why BK and others are suggesting to buy everything physical you may need now before you won’t be able to buy anything due to the dollar crashing.

Do I think this will happen in one big burst? No. Look at all the damage they caused in 2020 with the restrictions, destroying businesses and livelihoods and printing TRILLIONS of dollars backed by nothing as if there will be no consequence to doing this forever. It’s called MMT or modern monetary theory. This is a depression level economic crisis but for the most part you can’t even tell because everything with currencies is the same as it has always been.
 

Thank you very much for the help HP Cobra and Brothers. I had a small discussion with my father, he said he will look into this. I think he will ask one of his friends who works in a bank and if he is convinced, he will probably buy gold or maybe some land.
 
RTR Effects


Wall street jews, jeffrey epstein's best friends, have tried to manipulate the Gamestop stocks and forcing it to go out of business. Basically betting billions of dollars that Gamestop would go out of business.

People on Reddit found out about this, and they decided to invest all their money into Gamestop to force it the other way and make the stock more valuable.

So all the wall street jews who betted that it would fail, they are losing all of their money. They are losing much more than they bet. And the investors are not stopping, they keep investing more and forcing the wall street jews to lose even more.


They have lost more than $70,000,000,000.00
:lol: :lol: :lol:

Www.youtube.com/watch?v=tb35Z9tSRmA
 
Ol argedco luciftias said:
RTR Effects


Wall street jews, jeffrey epstein's best friends, have tried to manipulate the Gamestop stocks and forcing it to go out of business. Basically betting billions of dollars that Gamestop would go out of business.

People on Reddit found out about this, and they decided to invest all their money into Gamestop to force it the other way and make the stock more valuable.

So all the wall street jews who betted that it would fail, they are losing all of their money. They are losing much more than they bet. And the investors are not stopping, they keep investing more and forcing the wall street jews to lose even more.


They have lost more than $70,000,000,000.00
:lol: :lol: :lol:

Www.youtube.com/watch?v=tb35Z9tSRmA
It feels good to see these jews lose at their own game but either
1)This is a coordinated deep state operation for some reasons other than what's being said.
(Or)
2) This is an organic revolution which will be closed soon as Robindhood closed selling GMC and SEC said they will protect the jews.

At this point it's not even about money, its about giving a middle finger to these jews and telling them to fuck off.

These Guys are talking about getting people to buy shorted silver stocks which has been artificially reduced to almost 100 times its value. If they attempt to (and the SEC allows it) do to silver what they did to GMC ,then they are going to bankrupt these Jews and get their revolution in the financial mark.


If you have money to lose just to attack the jews ,go find the shorted silver stocks and buy them in a coordinated fashion. (Search the net about this and no this is not financial advice. )
 

Al Jilwah: Chapter IV

"It is my desire that all my followers unite in a bond of unity, lest those who are without prevail against them." - Satan

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