Elite Investor Jeremy Grantham Predicts 27% S&P 500 Drop and Recession
Jeremy Grantham, the market historian and GMO co-founder, predicts that the S&P 500 will plunge by at least 27% to around 3,000 points, and could plummet by more than 50% to around 2,000 points in a worst-case scenario. He warns that a recession will hit, and more financial disasters will occur due to stress on the financial system. Grantham accuses the Federal Reserve of perpetuating a cycle of asset-price bubbles and painful crashes, and calls for Fed Chair Jerome Powell to act more like Paul Volcker. Grantham also flags several longer-term, global headwinds such as climate change, resource shortages, and ageing populations.
