Another horrific stock market crash is coming, and the next bust will be unlike any other we have seen. Thats the message from Jeremy Grantham, co-founder and chief investment strategist of GMO, a Boston-based firm with $117 billion in assets under management.
Grantham pulls no punches when assigning responsibility for the coming financial carnage. In a recent interview with The New York Times, he calls Federal Reserve Chair Janet Yellen ignorant and says the Federal Reserve all but killed the economic recovery.
Grimly, he adds, We have never had this before. Its going to be very painful for investors.
Grantham isnt the only one worried about a market collapse.
We have no right to be surprised by a severe and imminent stock market crash, explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. In fact, we must absolutely expect it."
Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The Warren Buffett Indicator, also known as the Total-Market-Cap to GDP Ratio, is breaching sell-alert status and a collapse may happen at any moment.
So with an inevitable crash looming, what are Main Street investors to do?