January 8, 2021 | Grantham Predicts a Crash Hilliard MacBeth Author of "When the Bubble Bursts: Surviving the Canadian Real Estate Crash" Investment guru Jeremy Grantham, founder of a major investment firm based in Boston, delivered a warning this week. He says that the U.S. market is in the late stages of a major bubble. He predicts losses in the stock market comparable to the post-2000 period when the tech-heavy NASDAQ index declined 82 percent over two years. Will Grantham’s dire prediction come true this time? I met Jeremy Grantham in 2003 when he was a keynote speaker at the annual BCA Research conference in New York City. He started his talk by stating, “I’ve never been wrong.” After a long pause, during which the audience became very uncomfortable, he continued, “I’ve been early.” And the room erupted in laughter. I met him for the first time that day but he was famous for correctly calling the peak in the dot-com bubble in 2000, when he had been about two years early as he made changes to his client portfolios starting in late 1997. In 2006 he was a bit early in calling the peak to the housing market, and the stock market which peaked in July 2007. In his talk that day in 2003 he correctly pointed out that the housing bubble in the U.S. would eventually burst, sending the markets lower.