Legendary Investor: Financial Market Is Not In A Bubble. Humanity Is!

Legendary Investor Financial Market Is Not In A Bubble. Humanity Is!

Jeremy Grantham is an investor and the co-founder of Grantham Mayo Van Otterlo (GMO). He says that if it were possible, he would short humanity since we are not taking care of our world. He argues that we are in an environmental bubble that is about to crash.

The greatest bubble of them all, humanity.

Bloomberg recently released an article about Jeremy Grantham. Jeremy is a legend when it comes to investing and devotes 98 per cent of his net worth, $1 billion, to humanity. Grantham and his wife, Hanne, want to help the world escape catastrophe. They even give $30 million a year to several nonprofit organisations. He travels all around the world to give talks about the subject. The talk “Race of Our Lives” let the audience know about the race between the Earth’s rapidly warming temperature and the human beings coming up with ways to fight and adapt to climate change.

Grantham argues that capitalism is the best system in many ways, but it would need some heavy regulations. Jeremy stated:

“While capitalism does a million things better than any other system, it fails on long-term threats such as climate change. You must not expect unnecessary good behaviour from capitalists.”

While giving away $1 billion, Grantham’s planning to make even more money, and he’s hoping climate change offers the opportunity. In April 2017, GMO, which manages about $70 billion, launched a Climate Change Fund.

Financial bubbles are not as important as the “humanity bubble.”

Jeremy is famous for predicting the dot-com bubble as well as the global financial crises of 2008. His latest prediction is that civilisation will become the next big crises which are a lot bigger than just economics. In his view, the real threat of climate change is agriculture. The topsoil disappears at a rate of 1 per cent a year, and there are only 30 to 70 good harvest years left. Farmers will struggle to feed the planet if nothing is done, according to Jeremy. He adds:

“Even without climate change, it would be somewhere between hard and impossible to feed 11.2 billion. If that’s the curve in the stock market, you know what to do: panic and go short.”

Most people avoid the subject, but if we do not do anything, things will become even worse. Jonathan Foley states that companies should discuss the matter. He says:

“We can’t pretend there are no limits to the planet,” he says. “You need to address the seriousness of this without triggering people to become fatalistic.”

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