Billionaire Investor Says US Market Is Headed For A HUGE CRASH! | Tom Bilyeu Reacts
July 2, 2026
AI Summary
5 min readThe Biggest Investment Bubble in History
Jeremy Grantham, who managed up to $165 billion at his peak and has been investing for 60 years, says the US stock market is in the biggest bubble in American history. His advice for the average person is blunt: don't own US stocks. Not the S&P 500. Not US tech. Not crypto, which he calls "an unnecessary piece of nonsense" that will "certainly go to zero." Grantham is 87 years old, has given away over 90% of his billion-dollar fortune to his environmental foundation, and has seen enough market cycles to know that the current euphoria around AI looks exactly like every other great bubble—except bigger.
What Makes a Bubble
Grantham's core insight is that bubbles always form around the most important ideas. Railroads, the internet, and now AI are all genuinely transformative technologies. That's precisely why they attract bubbles. The problem is not that the technology is fake—it's that investors overestimate how quickly the revenue will arrive relative to the debt required to build the infrastructure. "The great bubbles always occur around the very most important ideas," Grantham says. "Everyone could see that it would change the world. And everyone wanted to put their money in, and so they overinvested."
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What you'll learn
- 1 (00:31) **The Core Warning: Don't Own US Stocks** - Jeremy Grantham delivers his blunt, contrarian advice for the average investor, immediately challenging the conventional wisdom of buying the S&P 500.
- 2 (01:22) **Defining a Bubble: The Great Ideas Trap** - Grantham explains that bubbles form around the most important, world-changing ideas, not scams.
- 3 (03:48) **Grantham's Framework: Long-Term Horizon & Human Psychology** - Grantham describes his approach: a long-term horizon and a focus on what people are missing, specifically the human tendency toward short-termism and emotional contagion.
- 4 (07:19) **The AI Bubble: Real Technology, Overinvestment, and the Debt Trap** - Grantham explains that AI is a genuinely world-changing idea, which is exactly what makes it a perfect bubble candidate.
- 5 (09:36) **The Historical Pattern: Wipeout Then Recovery** - Using the internet and Amazon as examples, Grantham and Bilyeu show that early investors often get wiped out before the technology creates massive wealth.
- 6 (11:40) **The Emotional Trap: Why Retail Investors Lose** - Bilyeu explains that the emotional contagion of a bubble causes retail investors to buy high on debt and sell low in panic.
- 7 (17:08) **Warning Signs: The Biggest Bubble in History** - Grantham states that all indicators point to this being the biggest investment bubble in American history, citing "pure crazy euphoria."
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Guests on this episode
Show Notes
Tom breaks down Billionaire investor Jeremy Grantham latest Diary Of A CEO Interview.
You know how everyone keeps saying, “You can’t time the market,” but deep down you’re terrified everything you’ve invested could vanish overnight? Or maybe you’ve felt the hype and FOMO about AI stocks, crypto, and housing — but you also have that pit-in-your-stomach feeling that none of it’s real? Sis, this episode is a MUST for your future self.
Jeremy Grantham — yes, THE Jeremy Grantham, legendary investor, founder of GMO, and the guy who literally predicted multiple market crashes — joins us for an unfiltered, no-holds-barred breakdown of what’s actually driving the markets right now. We’re talking about narrative-driven bubbles, why everyone blindly trusts the S&P, and how emotional contagion (not logic!) has most of us acting wild with our money. We also get brutally honest about why US stocks may be the most dangerous play on the table, and how the next economic collapse could wipe out everything you thought you understood about investing. Buckle up, because the warning signs are flashing everywhere.
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