Just about nearly worried
Squizzy has a dubious record when it comes to predicting market corrections and the bursting of bubbles.
Proof of this is that for five years leading up to the Global Financial Crisis (GFC) Squizzy wrote end of year columns predicting a market correction only to be proved wrong on every occasion until the one year he did not make the prediction – 2007/08.
So it is on that cautionary note that he references reports that a man who has accurately predicted market downturns and bubble bursts, GMO co-founder, Jeremy Grantham, is currently predicting the bursting of the “super bubble” that US stocks currently find themselves in.
In fact, he is likening the looming burst of reality to being on a scale similar to the 1929 stock market crash and the dot-com bust of 2000, not to mention the GFC of 2008.
Grantham has told Bloomberg: “I wasn’t quite as certain about this bubble a year ago as I had been about the tech bubble of 2000, or as I had been in Japan, or as I had been in the housing bubble of 2007. I felt highly likely, but perhaps not nearly certain. Today, I feel it is just about nearly certain.”
So on that basis, Squizzy is just about nearly worried.
There is no need to pass the smelling salts quite yet.