Well-known American investors Charlie Munger and Jeremy Grantham believe that the stock market is in a bubble and may burst as early as this spring. Norwegian experts have seen similar signs in Norway, but are uncertain about the bubble theory.
-American investor Jeremy Grantham wrote in an article published earlier this year that the long and long bull market since 2009 has finally matured and become an epic bubble.
He repeated this in a subsequent interview
Grantham is the founder of GMO, a Boston-based company that manages more than 500 billion Norwegian kroner. He also founded one of the first index funds in the 1970s.
He pointed out the four characteristics of what he believes to be a stock market bubble: extremely high valuations, explosive price increases, listings on many stock exchanges, and extensive speculation by investors.
-I think this will be regarded as one of the biggest bubbles in financial history in history books, at the same level as the South China Sea bubble in 1929 and 2000.
Grantham believes that the bubble burst will last until the end of spring or early summer of this year before the bubble burst.
Some people also predict that inventories will fall in the near future.Unknown number of investors bet On Thursday, the relatively calm stock market will fluctuate sharply in the next three months.
Investors bet 40 million U.S. dollars (340 million Swedish kronor) and the VIX index will rise to 40 points by mid-July. The VIX index is often called the “fear index” and is used to measure the volatility of the stock market.
During the downturn in March 2020, this indicator reached 82 points.
Investor legend Charlie Munger also believes that the stock market is dangerous. This 97-year-old investor may be Warren Buffett’s closest partner in the past 60 years.
In a question-and-answer session in February, Munger was asked if he agreed that market behavior was reminiscent of the Internet bubble-and had to end in a disastrous defeat.
-Yes, I think it will end badly, but I don’t know when.
Speculation, the stock market skyrocketed on the first day, and the controversial “SPAC” listing was highlighted as a bubble indicator.