Grantham predicts 27% S&P 500 drop and financial turmoil

Jeremy Grantham, the market historian and GMO co-founder, predicts that the S&P 500 will plunge by at least 27% and could plummet by more than 50%, a recession will hit, and more financial disasters will occur. Grantham warns that the sudden collapse of Silicon Valley Bank in March might be just one of several debacles this year. He accuses the Federal Reserve of perpetuating a cycle of asset-price bubbles and painful crashes and calls for Fed Chair Jerome Powell to act more like Paul Volcker. Grantham also flags several longer-term, global headwinds such as climate change, resource shortages, and ageing populations.