Veteran Investor Jeremy Grantham Hints S&P 500 Could Tumble Another 26 percent

Jeremy Grantham, the co-founder of the Boston-based asset management firm Grantham, Mayo, & van Otterloo (GMO), anticipates that the Standard and Poor’s 500 (S&P 500) could drop another 26% in the next 12 months. During the Reuters event, he also opined that this is a more dangerous looking moment in global economics than even the madness of the housing bubble of 2007. This bearish sentiment was followed by mentioning shorting junk bonds and the Nasdaq Composite.