10 things before the opening bell

Welcome to 10 Things Before the Opening Bell.

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Let’s jump in. 

1. Jeremy Grantham’s bubble warnings intensify. The GMO co-founder and legendary market historian is predicting an epic crash of the current “superbubble” —  the fourth one the US has seen in the past century.

In his firm’s latest letter to investors, Grantham said he is confident that the S&P 500 will crash 50%, just as the bubbles did in 1929, 2000, and 2008. “This checklist for a superbubble running through its phases is now complete and the wild rumpus can begin at any time,” he said.

There are bubbles in equities and housing, Grantham noted, and another is forming in commodities. He believes the speculative boom in meme stocks and crypto has already peaked.

Here are the key takeaways from the market guru’s forecast:

• Grantham warned there could be $35 trillion in wealth lost in the US alone when the superbubble pops. 
• The Fed failed to learn from the dot-com and housing bubbles, Grantham said, and it’s too focused on mitigating fallout rather than prioritizing prevention.
• To combat bleak returns, Grantham recommends investors avoid US equities, hold some cash, and keep some gold. 

2. Stock futures are in the red, pointing to a downbeat start later. Trading is volatile ahead of the Federal Reserve’s first meeting of 2022 this week. Take a look at what’s happening so far on the markets.

3. The investing chief of a crypto VC giant laid out what’s next for bitcoin. He also explained whether ethereum can beat its new rivals — and the seven blockchains that he’s most bullish on.

4. Earnings on deck: Microsoft, United Technologies, General Electric and 3M, all reporting.

5. Morgan Stanley just raised its outlook for oil prices to $100 per barrel by the 3rd quarter. The bank said it now sees Brent crude going beyond its previous $90 outlook on the back of a “triple deficit.” Here’s what that means.

6. El Salvador is set to offer crypto loans to businesses. The country will partner with solana-based lending company, Acumen, to give out cryptocurrency-based loans that will have an annual interest rate of 6%- 7%. Bitcoin-bull President Nayib Bukele continues to advocate for cryptocurrency. 

7. These three analysts just cut their rating on Netflix. Shares of the streaming company fell 25% after a big subscriber miss in its fourth quarter earnings report. See why these analysts are less bullish on the stock. 

8. Billionaire investor Carl Icahn said red-hot inflation won’t derail his investment approach. He said he isn’t letting soaring prices bother him — but thinks some stock valuations are “out of this world.”

9. Top analysts shared their thoughts after Microsoft’s acquisition of Activision Blizzard. The blockbuster deal shocked the tech world, and at the center of it is a promising metaverse opportunity. Here’s what to expect from the stock.

10. An AI-powered investment analysis platform picked the stocks most likely to surge after the Fed hikes interest rates. Backed by legendary hedge fund trader Stan Druckenmiller, the AI-platform listed the 14 stocks most likely to generate positive returns as rates rise.

Compiled by Phil Rosen. Feedback? Email prosen@insider.com or tweet @philrosenn.

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