Jeremy Grantham Quotes

When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.

… a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons..

I think the stock market is a very dangerous place to be at the present time. In fact, the stock market today is almost identical to where it was in October 2007 and then there was a $7 trillion crash and before that in March 2000.

In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility.

What is uncertain is how much further the bubble can expand, and what might pop it.

But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?

It is ludicrous to believe that asset bubbles can only be recognized in hindsight.

If you really believe that every three years the market will double, then go and buy shares. I don't believe that.

Cause and effect, the riddle of all history, is a particular devil in financial history; and never more so than today, where entire classes of security are collapsing not on public exchanges and stock-tickers but because there are no markets to establish prices this side of nothing.

We had a booming stock market in 1929 and then went into the world's greatest depression. We have a booming stock market in 1999. Will the bubble somehow burst, and then we enter depression? Well, some things are not different.

These heroes of finance are like beads on a string; when one slips off, all the rest follow.

Financial crises are an unfortunate but necessary consequence of modern capitalism.

Concentrating wealth in the hands of the few and deregulating financial institutions and practices lead to speculative bubbles that eventually burst - and that brings the whole country down.

On Wall Street, fraudulent schemes tend to thrive during economic booms, and to blow up when times turn tough.

The bubble, as investing phenomenon, has been well studied ever since the 17th-century tulip bulb frenzy. Its counterpart in bear markets is not well understood.

There's no statistical evidence that human beings have an ability to move in and out of the markets effectively. It's next to impossible.

Don't try to buy at the bottom and sell at the top. It can't be done except by liars.

All markets have boom and bust cycles, and I think venture capital market has even more exaggerated boom and bust cycles.

Shaking the confidence in the American economy. This will lead investors to refrain from investing in America or participating in American companies, thus accelerating the fall of the American economy.

People aren't as impressed by homes anymore after they saw how they collapsed in price with the financial crisis.

Every serious deflation I've looked at is preceded by an asset bubble, and then it bursts.

You cannot have an asset that goes up in price 1% every month or 1% every six months or every day without people starting to start thinking it'll do the same tomorrow, so that's why these bubbles form.

A bull market is like sex. It feels best just before it ends.

More money is lost anticipating the changes in the overall stock market than any other way of investing.

Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.