Hidden Forces The Last Bubble? Finding Value in a World on Fire | Jeremy Grantham & Edward Chancellor
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Feb 2, 2026 
Edward Chancellor, financial historian and investment strategist, provides historical perspective on bubbles. Jeremy Grantham, GMO co-founder and value investor, brings six decades of market experience and mean-reversion thinking. They discuss their book collaboration, why markets may be historically overvalued, the mechanics linking low rates to asset inflation, and where capital might be repositioned globally.
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Early Blowups That Taught Value
- Jeremy Grantham lost big on go‑go stocks like Market Monitor and American Raceways early in his career, which changed his approach to investing.
- That painful experience taught him personally that speculative rallies can implode extremely quickly and reshape investor behavior.
Mean Reversion Is Powerful And Measurable
- Grantham and Edward Chancellor found strong historical evidence that returns regress toward the mean and do so faster than many expect.
- They measured regression rates and showed value outperformed growth across much of the 20th century due to persistent mean reversion.
Monopoly Power Distorts Mean Reversion
- Increasing monopoly and concentration have weakened classic capitalist forces that drive mean reversion via competition.
- High‑quality, stable, high‑return companies have persistently outperformed, contradicting simple efficient market expectations.
