Jeremy Grantham, founder of hedge fund GMO and famous value investor, is famous for his value investment.

He has "managed to escape" several times in his 50-year career before the big investment bubble, including leaving decisively before the Japanese stock market burst in 1987 and predicting the subprime crisis in 2006.

Back in early 2021, Grantham issued a very sharp warning:

The bursting of a huge, epic bubble will be the biggest investment failure of many people's lives.

However, in 2021, as the Federal Reserve and many central banks worked together to stabilize the market, not only did not let the risk market collapse, but also pushed its prices to an all-time high that year, while GMO suffered massive redemptions and suffered huge losses, which was a shame for Grantham.

But that didn't change Grantham's extremely bearish view, and on Thursday the 83-year-old investment giant went on and on again:

We are now in a super bubble, just like the financial collapse in 1929, the bursting of the dotcom bubble in 2000 and the financial crisis in 2008, I am almost certain that this bubble has begun.

In the latest publication, "Let the wild hustle and bustle begin," Grantham wrote:

The list of super bubbles through all its stages is now complete, and the frenzied uproar could begin at any time.

It is only a matter of time before the bubble bursts

Grantham once said in an interview with Bloomberg:

A year ago, my grasp of the current market bubble was not as accurate as my previous grasp of the Japanese stock market, the 2000 technology bubble or the 2007 real estate bubble. I thought it was possible but not so sure.

Today, however, I am almost certain that we are in the midst of the fourth super bubble in 100 years.

Grantham also pointed out directly in the latest postThe S & P will plunge 50 per cent to 2500 from an all-time high of 4800 a few weeks ago. The Nasdaq index has retreated 10% from its all-time high in November on Wednesday and is likely to fall even more.

It is only a matter of time before the bubble bursts.

Grantham even thinks:

The coming crash will be on a par with the double collapse of Japan's stock market and real estate in the late 1980s.

The first bursting of the super bubble was in February last year, when dozens of the most speculative stocks began to fall and the riskiest assets began to shrink.

Cathie Wood's ARK Innovation ETF has fallen by more than 52%. In addition, the Russell 2000, a mid-cap index that usually does well in bull markets, lagged behind the S & P 500 last year. In fact, many stocks that reflect the Fed's liquidity have fallen sharply, with few exceptions.

Grantham representsThe sign of a super bubble is that stock asset prices are rising rapidly to two to three times the average speed of the entire bull market.The acceleration period is in February 2020-2021, during which the Nasdaq index has risen 58% since the end of 2019.

Experienced professionals know that the market price is too high, but feel they have to keep dancing for commercial reasons.

In addition, Grantham highlights those that occur in the later stages of a bubble."crazy investor behavior"The buying spree of electric car stocks, the rise of meaningless cryptocurrencies such as dog coins and NFT, and so on.

Grantham thinks we're in a position"Bull Market Vampire Phase"In response to questions about his bearish view in 2021.

In the bull market vampire phase, you put everything you have into it. Although outsiders stabbed it with COVID-19 's epidemic, shot it with ending QE and interest rate shocks, and hurt it with unexpectedly high inflation, it was not affected as before, but continued to fly.

But even if you think it will be immortal, it will eventually die, and the sooner it is better for everyone.

Grantham also said that it was not only the stock market that had a super bubble, but the commodity market was also in an "early bubble", especially the bond market, which would make it the "broadest and most extreme" bubble in the history of global real estate.

If valuations of all these asset classes were restored to 2/3 of historical standards, losses in the United States alone would reach $35 trillion.

He thinks it is more serious than the last real estate crisis.

Today, American house prices are the highest multiple of household income, surpassing even the catastrophic housing bubble of 2006 after a 20% rise last year.

The Federal Reserve is to blame.

Grantham concluded that the bubbles of the past 25 years all boil down toThe Fed's poor monetary policy.

Since Alan Greenspan became chairman of the Federal Reserve, the market has created a series of bubbles under the Fed's "aiding and abetting" because they made the money too cheap and then rushed to rescue the market in the event of a correction.

We condemn the super bubble and resent the Fed and other financial authorities for facilitating the bubble. The emergence of the bubble made our wealth ridiculously exaggerated, and we began to spend blindly.

However, with the bursting of the bubble, most of our dreams were shattered and the economy began to face accelerating downward pressure.

Now inflation is growing at its fastest pace in 40 years, so it greatly limits the opportunities for the Fed to use its talents, making it difficult for them to stimulate the economy by cutting interest rates or buying assets.

We are content with more lifeboats rather than avoiding icebergs. We forgive incompetence and do not even punish these outright malfeasance.

Target emerging markets

When the bubble is about to "burst", Grantham recommends:

It is time to sell US stocks, buy Japanese and emerging market stocks with lower valuations, hold some gold and silver to protect against inflation, and then allocate assets when US stock prices become attractive again.