Here's An Almost Certain Sign Jeremy Grantham May Be Right ...
https://www.cnbc.com/2021/02/01/cbo-...l-by-2022.html
With all the "stimulus" and money printing that's going on, there's a higher likelihood of accelerating inflation. I remember the "stagflation" of the 1970's when we had high unemployment combined with high inflation. That combination of economic conditions killed the stock market and propelled Ronald Reagan into the White House.
In one of his first meetings with Federal Reserve Chairman Paul Volcker after he was sworn in to office, President Reagan wanted to know what Mr. Volcker and the Fed could do to reign in the inflation monster? Paraphrasing a bit, Mr. Volcker responded "Oh, I can get inflation under control, but you're going to have to accept a recession in the process." Reagan gave his consent and Mr. Volcker went to work.
The inflation monster didn't give up without a fight. The prime interest rate reached 21 percent before Mr. Volcker finally got inflation under control. I wonder if this is what Jeremy Grantham's crystal ball is seeing, (i.e. a return to high inflation followed by high interest rates - to fight the inflation - producing a tanking stock market?)
One thing's for sure ... If the Government is forecasting blue skies and "Happy Days Are Here Again" we're probably screwed.