Jun 25, 2026 · 1h 47m
Jeremy Grantham warns of historic AI bubble and impending market collapse
Stock Market EMERGENCY: Sell Your Stocks Now, The Collapse Is Weeks Away!
As global markets reach historic highs, a legendary investor warns of a severe correction and deep systemic crises threatening Western stability.
- 1The current excitement surrounding artificial intelligence is creating an unprecedented stock market bubble poised for a major correction.
- 2Investors should diversify away from US equities by purchasing non-US index funds, holding cash, and acquiring precious metals.
- 3Everyday cosmetics, plastics, and pesticides contain endocrine-disrupting chemicals that are causing a catastrophic decline in human fertility.
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The brief
Legendary investor Jeremy Grantham warns that the intense excitement surrounding artificial intelligence has created the largest investment bubble in American history, setting the stage for a massive market collapse.
To protect wealth, Grantham advises investors to completely avoid US equities, pointing instead to non-US index funds, cash, and precious metals, while warning that industry advisors will rarely tell clients to exit.
Beyond the stock market, Grantham highlights a dissolving social contract in the West, driven by extreme wealth inequality and a catastrophic decline in human fertility linked to endocrine-disrupting chemicals.
Faced with severe economic and demographic challenges, individuals are urged to build practical, climate-focused skills and accumulate cash reserves to brace for a highly turbulent future.
What was said on this episode
37 statements · 12 positive · 23 negative · 1 mixed · 1 neutral
Investors should avoid U.S. stocks.
“Don't own U.S. stocks. That's a simple strategy that you can act on.”
Listen at 1:04
Investors with large U.S. technology positions should sell them.
“my personal advice would be to sell them all”
Listen at 1:15
Bitcoin will eventually reach zero.
“Yes, it will certainly go to zero.”
Listen at 1:32
Current investment markets may represent the largest bubble ever.
“And now we're in the biggest investment bubble that arguably has ever occurred.”
Listen at 2:09
Artificial intelligence is a historically important technology that will transform everything.
“artificial intelligence is right up there with the railroads. It's one of the defining great ideas of the last couple of hundred years. It's going to change everything.”
Listen at 5:27
The current AI investment bubble could peak soon.
“it would be compatible with history for the peak to be very soon”
Listen at 6:53
High-flying AI and growth stocks could decline 70%.
“A 70% decline would not be unexpected.”
Listen at 10:47
A major market crash tends to put the economy under stress.
“the economy tends to be under some stress”
Listen at 12:46
Investors should always diversify their portfolios.
“rule number one is always be diversified”
Listen at 13:52
Diversified portfolios should include bonds, cash, and possibly precious metals.
“It means wholesome bonds, wholesome cash, perhaps a small amount of precious metals like gold and silver.”
Listen at 13:57
Property is currently expensive relative to historical standards.
“Property is fine, except it's pretty darn expensive by historical standards.”
Listen at 17:16
Stock investors should favor non-U.S. equities over U.S. equities.
“if you have to own stocks, own them outside America. Don't own U.S. stocks.”
Listen at 19:02
U.S. equities may not remain intact over five to ten years.
“I'm not confident that U.S. equities will be intact in five years, 10 years.”
Listen at 19:46
The U.S. stock market is more expensive now than during the 2000 tech bubble.
“this is a higher price market I believe than 2000.”
Listen at 20:23
Businesses should prepare for impending economic problems.
“Just brace yourself for impending problems”
Listen at 27:38
Experts disagree whether AI will create abundance or destroy humanity.
“There is absolutely no agreement on whether AI is going to make us all so rich we can sit on the beach and never do another day's work, or it will wipe us out accidentally or on purpose”
Listen at 29:54
Advancing AI without carefully engineered benevolence is extremely risky.
“that is going to be extremely risky, isn't it?”
Listen at 31:28
AI and robotics are very likely to cause significant job disruption.
“Very likely that there will be significant job disruption.”
Listen at 43:49
SpaceX will fail to deliver most of its promised outcomes.
“I think it will fail to deliver anything like its promises in the prospectus. Yes, absolutely.”
Listen at 44:43
Starlink is a good idea and currently generates revenue.
“Starlink, great idea by the way, makes money”
Listen at 45:04
Human settlement on Mars would currently be effectively one-way.
“Going to Mars is not within the laws of physics. Really. It's a one way ticket to Mars for starters.”
Listen at 49:02
Young people should pursue engineering or other practical skills.
“be an engineer, do something really useful that will come in handy if things start to unravel.”
Listen at 51:33
Civilizational complexity may begin to unravel.
“I think there's quite a good chance that the level of complexity of our civilization will start to unravel.”
Listen at 52:04
Economic inequality is currently the biggest economic problem.
“I think that's the biggest economic problem.”
Listen at 53:24
Governments should tax wealthy people and support poorer people.
“We need to tax the rich and help the poor.”
Listen at 57:26
Average investors should buy broad-based non-U.S. equity indexes.
“Buy a broad based index of non US equities.”
Listen at 1:00:58
A portfolio could allocate 60% to non-U.S. equities, 5–10% to metals, and the remainder mainly bonds.
“For like 60% of your money and then 5 or 10% in precious metals. And if it's convenient and sensible. Hold a bit of real estate. And the rest I'd put in bonds.”
Listen at 1:01:04
Bitcoin will eventually reach zero, though the timing may be distant.
“Yes, it will certainly go to zero, but it may take a long time”
Listen at 1:04:18
Within 20–25 years, the average young couple may need fertility assistance.
“in 20 to 25 years, the average young couple will need help getting pregnant.”
Listen at 1:13:49
Men reporting healthier produce consumption had double the sperm count of the least healthy group.
“the guys who reported to eat the least bad versus the quarter that ate the worst, there was a doubling of sperm count.”
Listen at 1:17:44
Governments should ban poisonous chemicals to reduce toxicity.
“We've got to detoxify the world, which is intellectually easy. You ban poisonous chemicals”
Listen at 1:22:08
Pregnant women should avoid cosmetics and choose organic berries.
“If you could persuade pregnant women, A, to have no cosmetics, save a lot of money, no cosmetics for nine months, and then B, invest some of that money from your cosmetics or all of it in buying organic berries.”
Listen at 1:28:05
A stable rich society requires approximately 2.1 healthy, educated children per couple.
“we all need clean air, clean water, fertile soil, and 2.1 healthy, well educated children. Without any of those society fails.”
Listen at 1:33:17
Economic conditions, housing affordability, and job availability are likely to worsen.
“It's likely to get worse.”
Listen at 1:35:09
The United States faces a substantial risk of social-contract dissolution.
“It holds out too much chance that the social contract is dissolving.”
Listen at 1:36:20
Investors should exit the most dangerous portion of the market immediately.
“Get out of the most dangerous part and do it now.”
Listen at 1:43:55
The coming year could be the hottest twelve-month period on record.
“We could have from now on the hottest 12 months from now to this time next year that we have ever had in history”
Listen at 1:45:35
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.