13 December 2022
The U.S. Superbubble, as Jeremy Grantham has termed it, featured the most dangerous mix of factors in modern times at the end of last year: all three major asset classes – housing, stocks, and bonds – were critically historically overvalued. And all have retracted in 2022. Perhaps the most pertinent question we sought to answer for our clients at GMO’s Fall Conference was: what actions should investors take during the deflating superbubble?