Jeremy Grantham Issues Urgent Warning: US Equities Could Decline up to 70%

According to a CNBC interview, billionaire investor Jeremy Grantham warned that US equities could decline by up to 70%, citing valuations comparable to the dot-com bubble of the early 2000s. Grantham stated that current market valuations represent "the most expensive market in American history" based on his metrics comparing stock market value to GDP.

Grantham noted the timing of a potential collapse is difficult to predict but could occur within two years. He recalled that during the dot-com bubble, the NASDAQ fell 82%, and expects a similar magnitude decline from current levels. The NASDAQ is currently valued at 29,839; a 70% drop would bring it below 9,000.