Jeremy Grantham’s World of Super Bubbles has no soft landings

Federal Reserve policy has been a “horror show” ever since former chairman Paul Volcker resigned in 1987, resulting in a series of bubbles and crashes, according to Jeremy Grantham, co-founder of investment firm GMO.

That’s why the stock market is now in what 84-year-old Grantham calls a “meat grinder” phase, emerging after a superbubble fueled by extraordinarily low interest rates in the decade after the global financial crisis. He only expects the market to find a bottom at the end of next year, and advises against expecting a soft landing for the economy: “None of the great psychological bubbles have ever had anything but a regular recession or a wild recession.”

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