Jeremy Grantham warns US house prices will drop, the S&P 500 could plunge 52%, and more banking problems may lie ahead

• Jeremy Grantham expects US house prices to slide over the next few years.
• The GMO cofounder sees the S&P 500 plunging as low as 2,000 points, a 52% drop.
• The elite investor warns the recent banking turmoil may strain other parts of the financial system.

Prepare for a prolonged decline in US house prices, a potential 52% plunge in the S&P 500, and more banking problems, Jeremy Grantham has warned.

American homes are very expensive relative to household incomes, and surging mortgage costs have eroded people's homebuying power, the market historian and GMO cofounder told CityWire in a recent interview.