Financial markets are "ripe for major decline" next year, according to a fund manager who forecast the dotcom bubble and 2008's global credit crisis.
In an interview with the Financial Times, Jeremy Grantham, founder and investment strategist at GMO, said he expects the stock market to continue to rise next year, eventually attracting more significant numbers of retail investors, but it could then suffer a serious decline around US election time in late 2016. Grantham said it would be a "very different" type of crash compared to those that have gone before, as governments are so indebted. However, he said central banks should be more equipped to withstand and handle such a crisis as they are able to create money to recapitalise the...
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