The billionaire investor who accurately called the dot-com bubble issues urgent stock market warning, says stocks could fall as much as 70%.

Billionaire investing legend Jeremy Grantham issued a stark warning about US stocks, believing that stock values ​​could witness a massive collapse similar to the dot-com bubble.

In an interview with CNBC, Grantham warns Stock market valuations are now comparable to those seen during the dot-com bubble of the early 2000s.

According to the billionaire investor, his metrics show that the stock is highly overvalued.

“In a very real sense, I’m not sure there’s anything similar, but the 2000 tech bubble would be the closest. In terms of value systems being the most predictive, based on stock market value relative to GDP with adjustments, this is the most expensive market in American history.”

While Grantham says the collapse is very difficult over time, he suggests it could happen by 2028.

“My guess is sometime between two weeks, two weeks from now, two months, two quarters, or maybe two years; timing is always highly uncertain. The market will peak and then return to the trend. Getting back to the trend from here is closer to a 70% decline than a 50% decline.”

It also reminds investors that during the dot-com bubble, the Nasdaq fell by more than 80%.

“Keep in mind we said the Nasdaq was down 75% in 2000, in our quarterly letters, and it was down 82%.”

At the time of writing, the NASDAQ is valued at 29,839. A 70% breakdown could see it trade below the 9000 level.

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