Superbubble? Legendary Market Pundit Says Stocks Could Fall By Nearly 50%

GMO co-founder Jeremy Grantham said the recent pullback in the SPDR S&P 500 ETF Trust (NYSE:SPY) is just the beginning of the bursting of a stock market "superbubble."

What Happened? In a new interview with Bloomberg, Grantham said speculation in meme stocks, joke cryptocurrencies and other high-risk assets in recent years is finally on the decline. He said market valuations are so inflated at current levels that the Federal Reserve will have a difficult time preventing the S&P 500 from dropping to 2,500, roughly a 48% drop from its all-time highs earlier this month.