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

**Katie Kramer** (0:00)
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**SPEAKER_2** (0:27)
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/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

**Andrew Ross Sorkin** (0:57)
Bring in show music, please.

**Katie Kramer** (1:00)
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.

**Jeremy Grantham** (1:13)
Based on the value of the stock market compared to the GDP with with modification. This is the most expensive market in American history.

**Katie Kramer** (1:22)
And he's a noted contrarian, a perma bear who says bad days are ahead.

**Andrew Ross Sorkin** (1:27)
A 70% decline you think is in order.

**Jeremy Grantham** (1:30)
Yes, I do. And bear in mind, we set a 75% decline for the NASDAQ in 2000 in our quarterly letters, and it went down to 82

**Katie Kramer** (1:41)
Grantham's warning in his special interview.

**Jeremy Grantham** (1:44)
Avoid US stocks. The rest of the world has looked perfectly fine.

**Katie Kramer** (1:49)
Plus the rest of today's news, OpenAI delaying an IPO, your iPhone getting more expensive.

**Andrew Ross Sorkin** (1:56)
The Apple story may be the story of the year.

**Katie Kramer** (1:57)
And waiting on an Iran deal as well as a World Cup win for the US men?

**Joe Kernen** (2:03)
We'll have that winning.

**Andrew Ross Sorkin** (2:04)
Winning.

**Katie Kramer** (2:06)
It's Friday, June 26th. Squawk Pod begins right now.

**SPEAKER_6** (2:12)
Stand, Andrew, five, three, two, one. Up and Andrew.

**Katie Kramer** (2:16)
Two.

**Andrew Ross Sorkin** (2:18)
Good morning. 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 Kernen. Becky's off today on this Friday morning.
A little bit of rain outside. A little bit of rain in the markets though. 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. Then take a look at treasury yields. We're looking at the 10-year note in the 2-year. Look at the 10-year there, 4.38. You're looking at the 2-year just straight at 2

**Joe Kernen** (2:49)
I think the NASDAQ was up. Wasn't it up over 600 when we were looking at it? Yeah.
Closed down 100, down another 300 today. Still worries. We're going to talk to someone soon. But there's still worries about chips, AI trade, all that stuff. Shares of Apple coming off a 6% drop, their worst day in more than a year, the decline after Apple raised prices on MacBooks and iPads. And with the company looking to pass on the surging prices in memory and storage, passing it on to consumers. In a statement, Apple said, the rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this quickly, this much, this quickly. The company didn't raise prices on iPhones, but it left the door open to future hikes. And Senator Bernie Sanders weighing in with a post on X, probably on his iPhone, calling yesterday's move unacceptable. He said, corporate greed is Tim Cook, the billionaire Apple CEO claiming that hiking prices on Apple products by over $200 is unavoidable after it made $112 billion in profits last year and spent $310 billion on stock buybacks. Hours after Apple's announcement, Microsoft said it would increase what it charges for Xbox consoles because of soaring component costs.

**Andrew Ross Sorkin** (4:16)
But this goes back to sort of the long term political gouging argument across the board.
I thought President Trump's comments the other day were wrong. I thought Elizabeth Warren's comments over the years about gouging have been wrong. I think Sanders' comments have been wrong. This is about as bipartisan an issue as you could get.

**Joe Kernen** (4:39)
I have nothing to add as we both occupy the middle and honestly report how we feel.