--- title: "Investor Warns That a “Superbubble” May Be About to Burst in a Financial “Tragedy”" description: "A famous investor is warning his clients that the financial \"superbubble\" is getting ready to burst — and that it will soon reach an \"epic finale.\"" date: "2022-09-01" modified: "2022-09-01" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/investor-superbubble-burst-tragedy" categories: - "Future Society" tags: - "bonds" - "economics" - "finance" - "inflation" - "investment" - "Stocks" - "the digest" --- # Investor Warns That a “Superbubble” May Be About to Burst in a Financial “Tragedy” ![A famous investor is warning his clients that the financial "superbubble" is getting ready to burst — and that it will soon reach an "epic finale."]() *\Image: WANG ZHAO/AFP via Getty Images\* ## Boom and Burst A famous investor is warning his clients that a financial "superbubble" is getting ready to burst — and that the "epic finale" to this saga is gonna suck. As Jeremy Grantham, the founder of the prominent GMO asset management firm, argued in an [announcement to investors]() this week, there's ample writing on the wall to suggest that not only is the stock market in a "superbubble," but that its burst is imminent. There have only been three previous superbubbles in modern finance, Grantham noted — "bear market rally" events that followed the financial crashes of 1929, 1973, and 2000. Those events were all characterized by freakouts over low stock values followed by a wave of "crazy investor behavior," and according to the famed investor, such a pattern is visible now after this summer's [well-documented recession](). "The current superbubble features an unprecedentedly dangerous mix" of overvalued assets, Grantham wrote, noting that stocks, bonds, and housing are all "critically overpriced" and "rapidly losing momentum." "Each cycle is different and unique," he continued, "but every historical parallel suggests that the worst is yet to come." ## Danger Danger Perhaps the most significant indicator that we're in a soon-to-burst superbubble, Grantham wrote, is the obvious "explosion of confidence and speculation and crazy wishful thinking" among investors in spite of [growing inflation]() and the recession itself. What's set to follow, he added, isn't going to be pretty. There is now a "much increased \[probability\] of further unexpected financial and economic accidents," the likes of which we've seen before during and after stock market crashes — increased financial and food insecurity, fights for resources, and [further inflation](). As dire as his warning may sound, Grantham's acumen also led him to [predict in January]() that the stock market would drop precipitously, an event he called "The Wild Rumpus" months ahead of its arrival. We should all, he wrote, "prepare for an epic finale" to this superbubble — one that unfortunately seems like it'll result in "tragedy." **READ MORE:** [Entering The Superbubble's Final Act]() \[GMO\] **More on a less-brilliant investor:** *[Mark Cuban Sued for Promoting Crypto Exchange That Exploded]()* ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()