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 Grantham

Evidence 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 InvestingThe Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:39:12 PM

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