The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content


(Robert Gubbins/Getty Images/iStockphoto)

Jeremy Grantham: Another cautionary voice as markets get twitchy

It is convenient to think of market corrections being caused by some sort of calamitous event – say, a natural disaster or a sudden downturn in Chinese economic growth. But perhaps the next sharp dip will come from a 77-year old thinking out loud.

Carl Icahn, the billionaire investor (and septuagenarian) rocked the market on Monday after he said he was “very cautious” on stocks and could see a “big drop” coming. One minute, the S&P 500 is nursing gains that had sent the benchmark index above 1,800 for a record high; the next, it slumps 12 points.