moneynews.com / 22 Apr 2014 05:27 PMAnother horrific stock market crash is coming, and the next bust will be “unlike any other” we have seen.
That’s 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 he discusses who he holds responsible
for the coming financial carnage. In a recent interview with The New York Times, he calls Federal Reserve Chair Janet Yellen “ignorant” and said the Federal Reserve all but killed the economic recovery.He also says that he isn’t putting his clients’ money into the market right now.
“We invest our clients’ money based on our seven-year prediction. And over the next seven years, we think the market will have negative returns. The next bust will be unlike any other, because the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets. We have never had this before.”
Grimly, he adds, “It’s going to be very painful for investors.”
Grantham isn’t the only one worried about a market collapse.
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