- Jeremy Grantham explained why the stock market is in a meme-fueled bubble during an interview with Bloomberg on Tuesday.
- Grantham pointed to stretched valuations, commission-free retail trading, and cryptocurrencies to back up his view.
- The legendary investor also shared the valuation level that would make him feel comfortable buying stocks again.
Legendary investor Jeremy Grantham reiterated on Tuesday his view that the stock market is in a massive bubble as part of a lengthy interview with Bloomberg Opinion columnist John Authers.
From stretched valuations to investing in actual jokes, Grantham sees the current bubble as over extended and called the last 12 months a “classic finale to an 11-year bull market,” according to the interview.
“Peak overvaluation across each decile by price to sales, so that the most expensive 10% [of the stock market] is worse than it was in the 2000 tech bubble and the remaining nine deciles are much more expensive,” Grantham explained.
The market historian pointed to record levels in speculative indicators like individual trading volumes in call options and penny stocks as reason to believe that the market is currently in a bubble.