Steven Bartlett with Jeremy Grantham
A technology can transform the world while its investors lose their fortunes. The episode connects that market warning with concerns about wealth concentration and declining fertility.
Speculative bubbles often form around genuinely transformative ideas, such as railroads, the internet, and now artificial intelligence, leading to heavy overinvestment followed by painful market corrections.
Wall Street investment firms have strong business incentives to remain optimistic and are unlikely to advise clients to leave overpriced markets because the career risk of doing so is too high during a bull run.
Individual investors should protect themselves by diversifying into non-US equities, government bonds, cash, and precious metals rather than concentrating in expensive US technology stocks.