Wall Street Veteran Who Predicted The 2000 Tech Bubble, 2008 Subprime Crisis, Doubts Fed's Ability To Sidestep Looming Recession
Portfolio Pulse from Piero Cingari
Jeremy Grantham, co-founder of Grantham Mayo Van Otterloo (GMO), expressed skepticism over the Federal Reserve's ability to avoid an impending recession. He compared the post-COVID-19 equity surge to the 2000 tech bubble and suggested that factors such as AI speculation and political economic stimuli have delayed the bubble's burst. Grantham forecasted that the S&P 500's trendline value would be around 3,200 by year-end, over 1,000 points lower than its current level.
August 18, 2023 | 8:25 pm
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Jeremy Grantham's prediction of a lower S&P 500 trendline value by year-end and his skepticism over the Federal Reserve's ability to avoid a recession could potentially impact the SPDR S&P 500 ETF Trust (SPY).
Jeremy Grantham's bearish market predictions and his track record of accurately predicting significant market shifts could potentially influence investor sentiment towards SPY. His forecast of a lower S&P 500 trendline value by year-end suggests a potential decrease in the value of SPY. Additionally, his skepticism over the Federal Reserve's ability to avoid a recession could further impact investor sentiment and the performance of SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80