Commentary

Time to Jump Aboard the Value Train

The market has spent much of 2022 worrying about inflation and associated interest rate rises, and Growth stocks have certainly borne the brunt of this.

Commentary

Time To Jump Aboard The Value Train

In a new piece, GMO’s Asset Allocation Team notes that even with the battering of growth stocks in 2022 there is still ample opportunity to benefit from betting on cheap value stocks versus expensive growth names.

Commentary

What Does 8% Yield Pay For?

The yield of the U.S. high yield (HY) market, currently at 8.4%, has risen by over 420 basis points since the start of the year.

Commentary

Inflation in Japan Should Be Cheered, Not Feared

Japan has been stuck in a low growth, low inflation (and at times, deflationary) environment.

Commentary

No Stone Unturned

We strongly believe that the traditional benchmark-led approach to investing in emerging market debt can be far from optimal.

Commentary

Growth Traps Snap Shut

What do Netflix, Peloton Interactive, Coinbase, and Palantir Technologies have in common?

Commentary

Who Needs Tips When You’ve Got Friends Like This?

Soaring commodity prices have helped drive inflation to 8.5%, by far the highest level in the last few decades.

Commentary

The Turn in Value is Just Getting Started

Over the past decade it has seemed like Value investors have been very much left on the sidelines, bemoaning rampant speculation and valuations untethered from fundamental reality, while Growth investors have, quite frankly, been living it up in some style.

Commentary

Watch Out For The Balance Sheet

It’s not just interest rate changes that affect the markets, changes in the Fed balance sheet can also be a source of negative returns to equity and bond markets.

Commentary

Putin's Invasion Reminds Us That We Live In A Finite World

Putin's invasion reminds us that we live in a finite world in which resource prices tend to rise.

Commentary

Making Money And Reducing Risk In An Equity Superbubble

Navigating the career risk associated with bubbles (especially superbubbles) has always been tricky and is one of the biggest failings in the investment management industry.

Commentary

Investment Mistakes To Avoid

As we turn over the page to a new year, there are plenty of decisions that investors will need to make.

Commentary

Let The Wild Rumpus Begin

All 2-sigma equity bubbles in developed countries have broken back to trend.

Commentary

Japan Equities: Entrenched Perceptions Ignore Improving Reality

Most global equity managers today are underweight Japan.

Commentary

3Q 2021 GMO Quarterly Letter

This quarterly is a piece written by my Asset Allocation co-head John Thorndike. In it, he explains the rationale behind our strong preference for non-U.S. stocks despite the stellar performance the U.S. stock market has delivered over the last decade. The research behind the piece is an example of the bread and butter of our historical asset allocation analysis.