Throughout history, high PE markets have never predicted higher future profits, growth, or productivity; instead, they consistently predict tough times, with the pattern evident across the Great Depression (1929), Japan's Lost Decades (1989 65x PE), and the 2000 crash.
causalpending
Speaker
Jeremy GranthamEvidence Quote
“There's no example of a high PE predicting higher profits, higher growth, higher productivity in in history. What they do predict is tough times.”
Source
Jeremy Grantham: Lessons from 60 Legendary Years of Investing— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:39:12 PM
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