Iin the middle of a superbubble

 GMO co-founder Jeremy Grantham has been in this business longer than most. That doesn’t make him perfect, but he’s seen a lot of market history up close and personally. His strategy has long been to simply avoid buying during overpriced asset bubbles, and particularly during what he calls “superbubbles.” 

Do that successfully and everything else will work out.

The key, then, is to correctly identify these superbubbles. Easier said than done, especially when you’re in the middle of one. 

Historically, he says there were five in the last century: the US stock market in 1929 and 2000, the Japanese stock market in 1989, the US housing market in 2006, and Japanese real estate in 1989. All ended with major, extended pain. Jeremy says the US stock market is currently in the middle of another such superbubble.

But note carefully: in the middle of a superbubble. 

John Mauldin 3February 2023

https://www.mauldineconomics.com/frontlinethoughts/a-muddle-through-market-for-now