Billionaire Jeremy Grantham issues MAJOR Market Warning.

Homo sapiens is is I have

only two lessons. One of them is that

Homo sapiens is is hugely tilted to

wanting good news. A desperate

preference for good news over bad news.

Why not? Uh I I I get that. And the

other is they have no interest at all in

the future. They extrapolate today's

conditions forever. So if you're sitting

there in 1929 and the data looks good

and you're growing at 7% annualized GDP,

what the hell have you got to worry

about? We never anticipate anything.

Just step back

and um look at the data. Does it look

good? Does the future look good?

And um don't be conned into

being super optimistic by the

professionals, by the industry that

makes money from overconfidence. Lots

and lots of money.

>> Whoa.

This is a huge like bearish kind of

warning. And and we were just scrolling

around to see where Sarah Eisen had

gone. uh because we haven't seen her on

CNBC. She's not posting on Instagram.

She doesn't have any Instagram stories.

We're not blocked yet. So, we're like,

"Where is Sarah Eisen?" So, you know, we

do the usual welfare check. And so, what

do we do? You know, we we go on Twitter.

Ah, well, there she is. 4 hours ago.

This was good. Tips for spotting bubbles

and cautionary tales of optimism. Jeremy

Grantham with Wilfford Frost. Well,

let's make sure to add our heart uh to

to that one.

>> Show up.

>> And uh then what we need to do is think

about what he's saying here. He's

basically referring

to in 1929 when the stock market is at

excessive levels of enthusiasm and greed

or whatever. You know, nobody wanted to

hear anything negative. People just

wanted to hear positive because as he

says, humans are wired to only want to

hear good news. uh and he's basically

saying the entire financial industry uh

so in other words you know the stock

market the suits uh people you know with

whatever they've got going on like I

don't know the tokenization

securizations or whatever they benefit

off of you believing that up is the only

way uh you know to some extent and this

isn't really a you know this is not

designed to be a slight or whatever at

Michael Sailor, but to some extent when

Michael Sailor, what feels like on every

single Green Day posts these AI images

of himself basically, you know, doing

stuff like this.

Just get in orange tie AI image. Or

here's a good one. Uh where was it? Uh

just get in. Oh, there was another one

where Oh, yeah. The halls of eternity

echo with the circles of those who sold

the their Bitcoin. In other words, like

if you sell, you're going to be a crier.

And I mean, here he is, I guess, AI

symphony and Bitcoin major

by the future. Like, Michael Sailor's

lifestyle is funded by people believing

in in Bitcoin, frankly. So, again, I'm

not trying to slight Sailor. I'm just

saying it is true. A lot of people make

money off of things, markets going up

because it's not just that the

underlying prices are going up, it's

that there's more volume. When there's

more volume, market makers make more

money, broker dealers make more money,

researchers make more money, analysts

make more money, AI data tools around

financial analysis make more money,

financial adviserss make more money

because the AUM fees go up. Literally,

everyone gets paid more to be bullish.

Mind you, also if you say something and

and I want you to know this about the

psychology of markets, it's it's

probably so important that it's worth

writing down on something. Oh, you know

what we're going to do is is we're going

to write it down. No, I was going to

write it down on this, but there's no

there's not enough white on this. Have

you ever had one of these? By the way,

hashtagnotsponsored,

but I have these in my drawer and I

refuse to open them. Man, they look

good. Can't smell any of it right now,

but um yeah, kinder chocolada. They're

good. Uh but anyway, I'm trying to train

for a marathon. So um and then I also

have some Haribo Mindafro Happy Hoppers

in here. Yeah, I don't know why I have

this up, but anyway, it's so important

to say what I'm about to say that may as

well get a nice little yellow legal pad

here. Okay. All right. So

uh if

you are a bear on X okay so like you

know this could be any stock right any

stock any security or whatever you have

to understand how the algorithms work if

you are a bearer on you know whatever it

is Palunteer

Tesla whatever

uh algos

feed you to that audience, right? The

algo pushes you to that audience. Nobody

who

is invested in Palante or Tesla wants to

hear you being a bear, but the algos

will feed you to those people. So you

will always get sort of the hate and

there's no benefit to being a bear

because the people who aren't going to

buy Palanteer or Tesla probably aren't

being fed the algo for your bearish take

on Palunteer or Tesla, right? It's like

the people who are pro Palanteer or

Tesla are going to be fed your Palanteer

comments. And if you're a bear, you just

get hate. And if you're a blind bull,

like you raise your price targets every

day or you're just sort of like a clown

that only shills the upside because

there could never be a downside and

there can never be a recession again and

the Fed's just going to print us out out

of everything, which is a total lie. Uh

but whatever. You kind of

always uh win because if the market goes

down, it's not your fault because you

shield how great the product is. Oh,

it's the product that's good. The market

is just being fussy. If the stock goes

up, you're a brilliant analyst. And

remember, the algo is pitching you to

that demographic anyway. So, in other

words, social media motivates the

constant perpetuation of optimism and

hype and opium. And I think that's what

Jeremy here is saying, Grantham is

saying in a way that can actually be

amplified when you consider how

algorithms work today that bulls make

money. Bears don't, but listen to the

rest of this. I haven't listened to that

either.

um look around for signs of crazy bubbly

behavior to the moon to the moon sort of

thing which we have seen as splendidly

in this last several years as we have

ever seen in history which is a high

hurdle.

>> Mhm.

>> Just use your own brains and uh if you

don't want to follow my advice and buy

international stocks and and some and

and keep plenty of cash.

>> Wow. allocating outside of the US. I'm a

big fan of Train America, mind you, but

he's basically saying, "Hey, allocate to

international markets and cash because

the US is in a bubble." Which is really

interesting because then when you look

at this, take a look at this

individual's chart. This is I don't know

whoever this is from I3 Invest. Uh oh,

that's their I3 Invest. Okay, whatever.

NASDAQ 100 adjusted for M2 money supply.

We are past the.com bubble. NASDAQ 100

adjusted for corporate profit. Also past

the dot levels.

Kind of interesting.

Another thing to think about

is let's look at the August 1 tariff

rates and compare them to the April 2nd

Liberation Day tariff rates.

Higher. A lot higher. Little lower.

Little lower. The same. A smidge lower.

Higher.

Little lower. The same. Little lower.

The same. Little lower. Little lower.

Little lower. The same. Little lower.

Higher.

Little lower. Little lower. Higher.

Higher. The same.

uh and and then here a little lower both

of these. So you could see that these

tariff rates on the right, they're not

so substantially different on these

countries here than what we had on

liberation day. In fairness, what you

don't see here are some of the big

trading partners like Mexico and China.

Although China 55%,

you know, it's still pretty up there. So

yeah, I mean I think Jeremy has Granthm

here has has a a very interesting point.

Uh but you know, then again, maybe

markets are just designed to keep going

up. After all, uh Eric Trump wants you

to know that it feels like a great time

to enter Bitcoin. And then he tweeted

today, you're welcome.

And then somebody posted this chart.

Good time to buy.

Told you.

pretty priceless. But anyway, so uh in

our hunt for trying to figure out why

Sarah Eisen doesn't seem to be on CNBC

anymore, at least we haven't seen her in

a while, it seems like. Uh I'm sure she

is, but we we just haven't seen her in a

bit. We find this Granthm post and it's

kind of interesting that makes you

scratch your head a little bit of bubble

warning.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Papra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.