Jeremy Grantham, famed investor with a history of calling bear markets, issued a bearish long-term outlook for the stock market on Tuesday, seeing the dramatic rally in artificial intelligence-related stocks as a speculative bubble. "The long-run prospects for the broad U.S. stock market here look as poor as almost any other time in history," Grantham said in a blog post released by Boston-based Grantham, Mayo, Van Otterloo & Co.
The S & P 500 has rallied since late October 2023 to hit consecutive record highs, powered by megacap technology names. The equity benchmark is up 8% in 2024. Dominant AI chipmaker Nvidia has rallied another 81% this year, following a near 240% advance in 2023. Grantham thinks even though AI could end up being a game-changing technology for the world, the instant rallies in these stocks on hopes of the long-term potential may not be justified.
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Source: CNBC - 🏆 12. / 72 Read more »