Famed investor calls the next financial crisis

President Donald Trump keeps talking up his country’s record-setting stock market, but how soon will Wall Street suffer another inevitable crash? You could do worse than listen to legendary investor Jeremy Grantham, who avoided the dot-bomb early last decade and the calamitous fallout from the U.S. housing crash of 2007-09.

The co-founder and chief investment strategist of US$75-billion, Boston-based Grantham, Mayo, Van Otterloo & Co. thinks American markets will probably see “a melt-up or end phase of a bubble” within six months to two years. If that happens, there’s a 90-percent-plus chance of a bubble break or a meltdown, Grantham reckons in a recent investor letter.