Is this market another bubble? If yes, when will it burst?

Newfoundland member Ray Bursey recently brought our attention to an  interview of Jeremy Grantham. Billionaire Grantham has given away 98% of his wealth to environmental causes. Our members will find anything written by Grantham and any of his videos to be as interesting as they are useful.

In this interview, Grantham gave compelling reasons why the current market level is a bubble that will burst, like all bubbles. He has been a serious student of investment bubbles throughout history and knows more about them than just about anybody. He knows that investors will get hurt unless….well, read on.

We can reduce any risk. But we do that by increasing other risks. For instance, let us say that we are concerned about the current high market level knowing that it will reverse someday. No one knows when, but it will reverse.

We could go to cash or near-money in our portfolios to a greater extent but then, we risk reduced performance by the resulting cash drag should the market continue to rise.

Many investors have been there, done that, since the beginning of the current bull market that started in March of 2009. During that entire market journey, many “gurus” and opinion leaders spoke about imminent market reversal. Investors who listened regretted it.

Markets will fluctuate as they always have, and Monday Morning members will benefit from those fluctuations as they always have.

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me