Famed investor Jeremy Grantham said that he expects the S&P 500 (SP500) and the Nasdaq (COMP.IND) to fall about double from recent levels.
“The other day we were down 19.9 on the S&P and about 27 on the Nasdaq,” Grantham said earlier in a CNBC interview. “I would say that at minimum we are likely to do twice that and if we are unlucky, which is quite possible, we will do three legs like that and it may take a couple of years, as it did 2000.”
“This bubble superficially looks like very much like 2000, focused on U.S. tech, led by Nasdaq going to incredible highs,” Grantham added.
Grantham’s comments come after his January commentary that the stock market is in a “superbubble” and he expected the S&P 500 to plunge about 45% from current levels to a mark around 2,500.