Market Legend Jeremy Grantham Warns Of ‘Brutal Decline’ In 2023

Jeremy Grantham, the co-founder and long-term investment strategist at GMO, warned of a “brutal decline” for 2023 in an interview with Bloomberg.

Grantham predicted in a paper released Tuesday that the S&P 500 would be approximately 3,200 by the end of the year, which would be a near 20% full year decline.

“The range of problems is greater than it usually is — maybe as great as I’ve ever seen,” Grantham told Bloomberg News. “There are more things that can go wrong than there are that can go right. There’s a definite chance that things could go wrong and that we could have basically the system start to go completely wrong on a global basis.”

Grantham also told Bloomberg News there’s a chance the S&P 500 could hit 2,000, calling it a “brutal decline.” (RELATED: Michael Burry, Famous Investor Who Called Housing Crisis, Makes Another Prediction For 2023)

(L – R) Chairman of the Grantham Foundation Jeremy Grantham, Former Irish Prime Minister John Bruton, EU Commissioner for Environment Janez Potocnik, and famous sailor and yachtwoman Ellen MacArthur attend a press conference during the inauguration of the European Platform for the Efficient Use of Resources, on June 5, 2012, at the EU Headquarters in Brussels. (Photo: GEORGES GOBET/AFP/GettyImages)

Grantham also predicted a recession in 2023, saying all the signs are “now clearly signaling recession within the next year.”

The strategist added that the stock market could possibly pop, like it did in 1929, 1972 and 2000 because of “explosions in investor confidence.”

Others have warned of a recession and economic downturn, with Bank of America CEO Brian Moynihan saying in mid-January that the bank is preparing for a “mild recession” and a “downside scenario” where unemployment rises quickly.

Meanwhile, 98% of U.S.-based CEOs anticipate the U.S. will face a recession, a recent poll reported by The Wall Street Journal found.

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