Investing legend Jeremy Grantham founded one of the first index funds in the 1970s, and in a special Squawk interview, he’s issuing a warning to investors. A permabear, Grantham expects a market decline of 70%, and he’s counseling his team to avoid U.S. stocks. Plus, OpenAI may wait until 2027 to IPO, and Apple is hiking product prices, thanks to rising costs of memory chips. Jeremy Grantham - 16:00 MacKenzie Sigalos - 41:55 In this episode: MacKenzie Sigalos, @KenzieSigalos Joe Kernen, @JoeSquawk Andrew Ross Sorkin, @andrewrsorkin Katie Kramer, @Kramer_Katie Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Jeremy Grantham: The Most Expensive Market in American History 6/26/26

Squawk Pod

# Full Transcript

**Podcast:** Squawk Pod

## Participants

- **Andrew Sorkin** (None)
- **Joe Kernan** (None)
- **Mackenzie Sigalos** (None)
- **Katie Kramer** (CNBC)
- **Jeremy Grantham** (GMO)

## Transcript

[SPEAKER_01] Good morning, students. Soccer teaches us teamwork, leadership, geometry, art, physics, and a lifetime of lessons we can take with us long after we leave the field. That's why Bank of America and U.S. Soccer are committed to helping bring soccer to every school. Soccer is officially in session. Raise your hand to help bring soccer to schools at bofa.com slash soccer at schools.

[SPEAKER_00] This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.

[SPEAKER_04] Bring in show music, please.

[SPEAKER_05] Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod. Investor Jeremy Grantham is a veteran in the field. He founded one of the first index funds in the early 1970s.

[SPEAKER_07] Based on the value of the stock market compared to the GDP with modification. This is the most expensive market in American history.

[SPEAKER_05] And he's a noted contrarian, a perma bear who says bad days are ahead.

[SPEAKER_09] A 70 percent decline you think is in order.

[SPEAKER_07] Yes, I do. And bear in mind, we said a 75 percent decline for the Nasdaq in 2000 in our quarterly letters and it went down 82.

[SPEAKER_05] Grantham's warning in a special interview.

[SPEAKER_07] Avoid U.S. stocks. The rest of the world has looked perfectly fine.

[SPEAKER_05] Plus the rest of today's news. Open AI delaying an IPO. Your iPhone getting more expensive. The Apple story may be the story of the year. And waiting on an Iran deal as well as a World Cup win for the U.S. men.

[SPEAKER_08] You'll have that winning.

[SPEAKER_05] Winning. It's Friday, June 26th. Squawk Pod begins right now.

[SPEAKER_04] Stand Andrew 5 in 3, 2, 1, up and Andrew 2.

[SPEAKER_09] Good morning and welcome to Squawk Box right here on CNBC. We're live at the Nasdaq market site in Times Square. I'm Andrew Ross Sorkin along with Joe Kernan. Becky's off today on this Friday morning. A little bit of rain outside. A little bit of rain in the markets. So take a look at what's happening in the energy markets right now. Let's show you what's going on there. WTI crude, $69. You can buy Brent, 72.29. And then take a look at Treasury yields. We're looking at the 10-year note in the two-year. Look at the 10-year there, 4.38.

[SPEAKER_09] You're looking at the two-year just straight at two.

[SPEAKER_08] I think the Nasdaq was up. Wasn't it up over 600 when we were looking at it ...

Jeremy Grantham: The Most Expensive Market in American History 6/26/26

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Jeremy Grantham: The Most Expensive Market in American History 6/26/26

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.