Jeremy Grantham says this is the most expensive market in 'American history'
Veteran investor Jeremy Grantham thinks the artificial intelligence boom has pushed the U.S. stock market to its most expensive level ever and could eventually lead to a historic decline. "Based on the value of the stock market compared to GDP, with modifications, this is the most expensive market in American history," Grantham told CNBC's " Squawk Box ." While the GMO co-founder said he wasn't sure there was a comparable period, the tech bubble of 2000 is the closest analogy. He also highlighted the so-called Buffet indicator , which compares the total value of the U.S. stock market valuation with the size of the economy in terms of GDP. The market capitalization to GDP ratio referenced by Grantham is estimated to be at 235%, according to Longtermtrends.com . It means that the value of the total stock market is more than two times the size of the U.S. economy. Legendary investor Warren Buffett used this indicator, saying years ago that when it "approa...