There are no two ways about it, argues Jeremy Grantham: “The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble”.

The co-founder of Boston-based-based fund manager GMO says: “Featuring extreme overvaluation, explosive price increases, frenzied issuance and hysterically speculative investor behaviour, I believe this event will be recorded as one of the great bubbles of financial history, right along with the South Sea bubble, 1929, and 2000.”

Coming from a man who was famously prescient about the bursting of bubbles in 2000 and 2008, this red alert about investment risk, issued in January, merits attention.

Others have still to be convinced. In a recent strategy paper, economists at Goldman Sachs argue that, while there are pockets of excessive valuations in equities, “the absence of significant leverage (outside the government sector) and the early stage of the cycle…

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