The US threatens the world with a new financial bubble. According to the stock exchange statistics, prices of US companies’ shares significantly exceed income of these companies. Analysts suppose that if the bubble bursts, the consequences may affect all global markets.
The existing situation in the US stock market radically differs from those that took place in the past. That is why it is extremely difficult to predict the consequences of the bubble burst. Investing icon Jeremy Grantham unveiled his concerns saying that “the stories [of crazy] are everywhere and are what you need for a bubble to break.” Jeremy Grantham has assets worth $160 billion. He emphasized that such dubious investing instruments as SPAC became really popular. Mergers and acquisitions specialists seem to be great for raising capital and can act as an alternative to IPOs for some startups. However, Jeremy Grantham believes that they offer the following, "give me your money and trust me that I will do something useful with it." "That is a real testimonial to the speculative nature of the market," he added. He also supposes that all shares are overpriced. "My bet is that reality will catch up with the high P/Es… it is a matter of weeks or months, not years…," he warned. Notably, several weeks ago, Goldman Sachs, the world’s largest bank, also warned of the risks of a slump in the stock market.
