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Grantham Warns: AI Sparks Potential Market Bubble

1/20/2026

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Story summary
  • Jeremy Grantham, veteran investor, in a Merryn Talks Money interview about his new book, says artificial intelligence could form a market bubble.
  • He notes artificial intelligence fits the historical pattern of transformative ideas attracting excessive capital and inflating valuations.
  • Grantham says investors may have an advantage navigating these conditions due to fewer constraints.
  • Profitable investments often emerge after a bubble.