Legendary Investor: There is only one signal that the bubble has peaked, the leader falls first

ME AI Message: Jeremy Grantham believes that before a stock market bubble peaks, an extremely rare and highly accurate signal will appear—“divergence.” When the overall market continues to rise, the leading “dragon-head” stocks (high-volatility speculative stocks) that had previously led the rally will turn downward first, even getting the direction of gains and declines wrong. This “dragon-head falls first” divergence phenomenon is the most reliable—and most commonly overlooked—warning sign before a bubble collapses. Since 1925, it has occurred only four times: in 1929, 1972, 2000, and 2021. (Source: Wall Street Vantage)
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