Grantham Warns of a 70% Selloff in a Record-Valued U.S. Market
Jeremy Grantham of GMO told CNBC that today’s U.S. stock market is the most expensive in history and could collapse by about 70% as valuations revert to long-run trends, according to his two-sigma bubble framework; timing is uncertain (weeks to years). He notes valuations have remained elevated since 2010 due to easy money, draws parallels to the dot-com era and railroads, and cautions that AI hype could fuel overinvestment even as transformative technology persists.