Elite investor Jeremy Grantham warns the stock market's rally this year is a 'head fake' - and a recession is still coming

• Jeremy Grantham says AI hype has prevented the tech bubble from collapsing.
• The GMO cofounder is wary of US stocks, real estate, and commodities.
• Grantham sees a 70% chance of a US recession in the next 18 months.

There's a historic bubble in stocks that's about to burst — and the US economy will most likely suffer a recession, Jeremy Grantham has warned.

"A dozen giant American stocks have had a hell of a run on the back of AI, and that has certainly created the impression that it's game over," he said, speaking at an investor event held by Livewire Markets in Sydney this week.