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Famous investor doubles down on crash call, says selloff has started

"The wild rumpus can begin at any time," says the co-founder of Boston asset manager GMO, who has been calling bubbles for 50 years.

Specialists Dilip Patel, left, and Jeremy Vargas work on the floor of the New York Stock Exchange, Thursday, March 12, 2020. | Photo: Richard Drew/AP/Ritzau Scanpix

Jeremy Grantham, the famed investor who for decades has been calling market bubbles, said the historic collapse in stocks he predicted a year ago is underway and even intervention by the Federal Reserve can’t prevent an eventual plunge of almost 50 percent.

In a note posted Thursday, Grantham, the co-founder of Boston asset manager GMO, describes US stocks as being in a "super bubble," only the fourth of the past century. And just as they did in the crash of 1929, the dot-com bust of 2000 and the financial crisis of 2008, he’s certain this bubble will burst, sending indexes back to statistical norms and possibly further.

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