GMO Co-Founder Grantham Warns AI Bubble Could Drive 70% Drop in U.S. Stocks

Jeremy Grantham, co-founder of GMO, said an AI-driven bubble has pushed U.S. stocks to the most expensive levels in American history and could set up a decline of as much as 70%. According to BeInCrypto, Grantham told CNBC investors should step away from U.S. equities and look abroad, arguing near-universal faith in AI has fueled overinvestment and that past speculative extremes eventually revert to trend. He said the timing could range from two weeks to two years. The report notes U.S. spot Bitcoin ETFs saw a record 30-day outflow of $6.35 billion through mid-June, citing Galaxy Research, while Grantham reiterated his view that Bitcoin (BTC) is worthless and headed to zero.