Jeremy Grantham: Sell U.S. shares and buy EM shares
"I was absolutely amazed", - said billionaire investor-billionaire Jeremy Grantham in yesterday's interview with CNBC. - "This rally is unprecedented in terms of both speed and content: never in history has the stock market grown like this against a backdrop of completely obvious economic problems".
Investors who rushed to the U.S. stock market should sell them, buy shares of companies in developing countries and forget about them for several years, the expert advised. According to him, buying American securities is a "game with fire".
"This is the fourth real bubble in my career," said the 81-year-old investor, who in the early 1970s launched one of the world's first index funds.
In early June, Jeremy Grantham's GMO (US$60 billion under management) announced a reduction in its portfolio from 55% to 25%. According to the billionaire, it is still difficult to say when the world economy will be able to fully recover from the effects of the coronavirus pandemic.
The influx of small speculators into the stock market "will end in tears", warned another billionaire investor Leon Cooperman on Wednesday on CNBC.
Over the past three months, the stock index S&P 500 soared by 40% and played back almost all the losses suffered due to the pandemic.