TIP650: Stock Market Bubbles, AI, & Climate Change w/ Jeremy Grantham

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 9 August 2024

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay Finck is joined by investing legend and bubble historian, Jeremy Grantham. Jeremy gives his updated views on the recent stock market run up, how today’s market compares to market bubbles of the past, and indicators that point to the potential bear market that lies ahead. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:49 - Lessons Jeremy learned from his early career investing in the 1960s. 06:13 - How today’s market compares to previous superbubbles in the 1920s, 1989, 1999, and 2007. 12:11 - Jeremy’s view on the market rally since 2022, and the impact of the overcentration of the Magnificent 7 in the S&P 500. 17:40 - Why bubbles tend to last longer than we would expect them to. 31:56 - Whether using the P/E ratio is a reliable way to value the broader market. 36:29 - The major flaw in projecting compounding growth into the future from here. 44:55 - What Jeremy is seeing for innovation in the green energy space. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Check out GMO’s website. GMO’s new US Quality ETF. Related Episode: Listen to TIP542: The Crisis Bigger Than Banks w/ Jeremy Grantham, or watch the video. Related Episode: TIP466: The Bear Has Arrived w/ Jeremy Grantham, or watch the video. Related Episode: TIP371: The Top of the Cycle w/ Jeremy Grantham, or watch the video. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Range Rover Fidelity Fundrise Sound Advisory AT&T The Bitcoin Way SimpleMining BAM Capital American Express Onramp Public USPS Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:03.0	On today's episode, I'm joined by investing legend in market historian Jeremy Grantham.
0:08.0	Jeremy is the co-founder and investment strategist at GMO, one of the world's most well-respected asset managers with tens of billions of dollars in Aum.
0:16.0	Jeremy gives us an updated view on the recent stock market run-up,
0:20.0	how today's market compares to market bubbles over the past century and indicators that point to the
0:24.7	potential bear market that lies ahead. Jeremy successfully sidestepped past market bubbles such as
0:30.3	the Japanese market in 1989, the Tech Bubble in 1999, the Great Financial Crisis
0:35.3	in 2008, and he also successfully called the bottom in the depths of that major market correction.
0:40.9	He's been calling for a market bubble for multiple years now and he also explains here that he's always been early in these market calls throughout much of his career.
0:49.0	We live in some really confusing times in markets as the Fed is now on the cusp of lowering interest rates
0:54.6	and the market concentration of the top seven companies seems to only continue to increase.
0:59.2	Jeremy brings to the show a wealth of wisdom and experience as he's been an investor for well
1:04.6	over 50 years.
1:06.4	While we're all caught up in the day-to-day and year-to-year movements in the markets, Jeremy
1:10.8	helps provide a 10,000-foot overview and gives us a better sense of what is happening in the
1:15.8	grander scheme of things.
1:17.6	With that, I hope you enjoy today's discussion with Jeremy Grantham. network. Since 2014, we studied the financial markets and read the books that
1:35.3	influence self-made billionaires the most. We keep you informed and prepared for
1:39.9	the unexpected. Now for your host, Clay Fink.
1:44.0	Welcome to the investors podcast.
1:50.0	I'm your host today Clay Fink and today I have the
1:57.2	great honor of being joined by investing legend Mr. Jeremy Grantham.
	...

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