Jeremy Grantham: ‘Almost Everything Looks More Attractive Than the US Equity Market’

Long-term investment strategy and the identification of market bubbles define the career of Jeremy Grantham, co-founder of GMO. Grantham argues that the current U.S. equity market is dangerously overpriced, fueled by speculative AI-related hype that mirrors historical crashes like 1929 and 2000. He emphasizes that institutional focus on short-term profit maximization ignores existential threats, including climate change, resource depletion, and endocrine-disrupting toxins. Despite these risks, Grantham finds a potential path to long-term sustainability through the accelerating global decline in birth rates and the transition to cheap, green energy. He advocates for a disciplined, value-oriented approach that questions prevailing market narratives and prioritizes long-term survival over the fleeting gains of speculative bubbles. His insights underscore the necessity of looking beyond standard financial metrics to understand the broader, often ignored, constraints on global economic growth.