Brace for the S&P 500 to plunge 50% and a painful recession to strike as the 'everything bubble' bursts, elite investor Jeremy Grantham warns

Jeremy Grantham expects stocks to plunge and a recession to hit as the "everything bubble" bursts.
The investor warns the S&P 500 could halve in value to around 2,000 points in a worst-case scenario.
Jeremy Grantham has warned the implosion of an "everything bubble" could tank the S&P 500 by up to 50%, and plunge the US economy into a painful recession.
The prices of stocks, bonds, real estate, fine art, and other investments ballooned to unsustainable highs during the pandemic, Grantham said. The market historian and GMO cofounder shared his thesis with economist David Rosenberg during a recent Rosenberg Research webcast.
The current bubble is "pretty damn big" compared to previous ones, and dwarfs the dot-com boom in scope, Grantham said.
"It's bad enough just doing the equity market in 2000," he said. "This time, we have done a dead ringer for the equity market, plus the gravy, we've done the housing market and the bond market."
"Be advised this is not a genteel setback like 2000," Grantham continued, predicting a bear market could persist until deep into next year. He noted the dot-com crash only caused a mild recession, but even so, the Nasdaq index plummeted 82% and the S&P 500 halved in value during that period.

STOCK PSYCHOLOGY