Jeremy Grantham, famed investor with a historical past of calling market crashes, mentioned Wednesday the burst of multiple-asset bubbles he is been warning of has but to happen regardless of 2022's excessive volatility. "The present superbubble options an unprecedentedly harmful mixture of cross-asset overvaluation (with bonds, housing, and shares all critically overpriced and now quickly dropping momentum), commodity shock, and Fed hawkishness," Grantham mentioned in a word revealed Wednesday . "Every cycle is totally different and distinctive – however each historic parallel means that the worst is but to return." Grantham, the co-founder of Grantham Mayo van Otterloo in 1977, is a widely-followed investor and market historian with a monitor report of figuring out market bubbles. He foresaw the 2008 bear market and the dot-com bubble-bursting of 2000. The 83-year-old investor mentioned superbubbles take a number of phases. After the bubble kinds and a setback occurs, prefer it did within the first half of the yr, there'll normally be bear market rallies earlier than the market hits the underside, he mentioned. "Bear market rallies in superbubbles are simpler and sooner than every other rallies," Grantham mentioned. On the intraday peak on August 16, the S & P 500 had recovered 58% of its losses from its June low. The magnitude of the bear-market comeback appeared "eerily related" to different historic superbubbles throughout 1929, 1973 and 2000, Grantham mentioned. Grantham mentioned the subsequent leg down for the market is more likely to be pushed by falling revenue margins. He additionally pointed to various near-term issues together with Russia's invasion of Ukraine, fiscal tightening and China's Covid outbreak. In Might, when the S & P 500 was down about 20% from its all-time excessive, Grantham known as for shares to at the very least double their losses. Now the S & P 500 is 17.9% off its peak as of Wednesday's shut. "If historical past repeats, the play will as soon as once more be a Tragedy," Grantham mentioned.