GMO's Grantham Recounts Predicting the Dotcom Bubble

The transcript discusses the challenges faced by a financial expert during the dot-com bubble. Despite early warnings about the market's instability, clients withdrew their investments, leading to significant financial and reputational challenges. However, the expert's firm managed to avoid losses during the market downturn, achieving positive returns over three consecutive years while the broader market suffered significant declines.

What factors did the speaker attribute to the perception of market imbalances?

• Global economic conditions

• Technological advancements

• Government policies

• Their writings and public speeches

During the market bubble of 1998-2000, what was the reaction of the clients to the speaker's early predictions?

• They increased their investments

• They recommended the speaker to others

• They were supportive and patient

• They withdrew their investments

What was the market condition when the .com bubble burst?

• The market saw a minor correction

• The market remained stable

• The market experienced a significant collapse

• The market continued to rise

How did the speaker's financial performance fare during the early 2000s?

• They had mixed results

• They experienced significant losses

• They broke even

• They had consecutive profitable years

By how much was the S&P down when the speaker had three up years?

• 20%

• 30%

• 40%

• 50%