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Jeremy Grantham, the veteran investor and co-founder of asset manager GMO, has declared that the United States stock market has reached its most expensive valuation in American history, driven by what he describes as soaring valuations tied to artificial intelligence.
The warning marks one of the starkest assessments yet from one of the investment world's most closely watched long-term bears.
The AI Premium at the Center of Grantham's Warning Grantham's argument centers on the AI-driven enthusiasm that has propelled U.S. equity valuations to levels he views as historically unprecedented.
In his assessment, the excitement surrounding artificial intelligence has pushed prices to a point that has no precedent in the long arc of American market history — a claim that, if accurate, places current conditions beyond even the peaks of the dot-com bubble and the period preceding the 2008 financial crisis.
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