Veteran investor Jeremy Grantham recently received a stream of online abuse after turning down Bitcoin’s investment appeal. That abuse, Grantham says, suggests that the stock bull market (a bubble in his eyes) could burst within months.
Grantham has argued in the past that the rapidly increasing hostility towards market bears is a very good indicator of a late-stage market bubble.
He returned to the subject last week, noting that he had recently given his “fairly mild” opinion on Bitcoin, namely that it was based on belief.
This everyday observation has been welcomed by “armies of individual fanatics,” says Grantham. “There was no insult that wasn’t good enough for me, not just senility and age and complete ignorance about Bitcoin. I got three insults back around my big ears that I haven’t had since I was seven. “
This is just one of many potentially worrying signs cited by Grantham. It also refers to ratings and “insane behavior” on stocks like GameStop and Tesla.
He may be right in saying that the increasing hostility towards bears is an indicator of a late stage, but there are two problems with this argument. First, Bitcoin enthusiasts have always been rather fanatical.
Second, personalized online abuse is now commonplace. Yes, skeptics like Grantham are denounced in certain areas, but even commentators who have the audacity to propose stocks may not find themselves in a bubble.
Today’s polarized online world is not only characterized by an increasing hostility to bear. It is characterized by an increasing hostility towards anyone who does not share their opinion.