4 Investing Tips From Jeremy Grantham, Expert on Stock Market Bubbles

Legendary investor Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO), is an expert on bubbles, and not the kind you make from dish soap. He predicted two big bubbles in recent history: the dot-com crash in 2000 and the housing market blowup in 2008. Today, he's worried about unwarranted investor optimism in the short term and the economic effects of climate change in the long term. Here's his advice for investors.

In GMO's first-quarter 2020 newsletter, Grantham expressed deep concern with the mismatch between high P/E ratios and the state of the U.S. economy. In his words, "The current market seems lost in one-sided optimism when prudence and patience seem much more appropriate."

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Source Fool.com