Commentary

Beyond the Landing

In our latest Quarterly Letter, Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.

Commentary

GMO 7-Year Asset Class Forecast: August 2023

GMO has published a new 7-Year Asset Class Forecast.

Commentary

Turbulence on the Path to Transformation

Despite substantial growth and huge advancements in public policy support, clean energy has had an abysmal stretch in the stock market the last two and a half years.

Commentary

Why Is There More Volatility in My Portfolio?

We have observed increasing volatility within our Systematic Global Macro (SGM) portfolio, partly driven by an increase in volatility in our equity positions.

Commentary

Does Democracy Matter for Emerging Sovereign Debt?

Russia’s 2022 invasion of Ukraine and the ensuing war have prompted new and difficult questions for sovereign debt investors.

Commentary

GMO 7-Year Asset Class Forecast: July 2023

GMO 7-Year Asset Class Forecast: July 2023

Commentary

Valuation Metrics in Emerging Debt

Our emerging market debt valuation metrics across all but the U.S. interest rate dimension remain unambiguously attractive. In our Quarterly Valuation Update, we provide our Q2 assessment.

Commentary

Weighted Average Green Revenue (Wagr): Integrating Climate Solutions into Portfolio Construction

Transitioning to a green net-zero economy requires climate solutions that enable the economy to decarbonise, such as renewable energy, electric vehicles, and recycling technologies.

Commentary

Estimating Value Chain Emissions for Portfolio Construction

Climate change presents a significant source of transition risk for investors as companies face increasing pressures from regulators, consumers, and shareholders to lower their carbon footprints.

Commentary

Slow Burn Minsky Moments (and what to do about them)

In his latest paper, James Montier lays out a framework for spotting what he terms “slow burn Minsky moments,” or the economic vulnerabilities associated with the build-up of private sector debt.

Commentary

Weighing The Risk of Sanctions in Emerging Debt

Political risks have always been present in emerging debt markets and we’ve long taken them into consideration within our overall country risk process.

Commentary

GMO 7-Year Asset Class

GMO has published a new seven-year asset class forecast.

Commentary

Jump In The Deep End

Value equities have faced years of tough sledding, outside a run of outperformance following “vaccine day” and the lift-off from zero rates. Broadly, this has left value stocks extraordinarily cheap relative to growth. However, looking closer, the cheapest 20% of stocks – what we call “deep value” – trades unusually cheap today despite offering surprisingly attractive fundamentals.

Commentary

Value Does Just Fine in Recessions

A core concern for investors contemplating taking advantage of the incredible cheapness of deep value stocks today is the potential for a near-term recession. 

Commentary

The Quality Spectrum: Stability in an Unstable World

War, inflation, rising rates, banking chaos, and recession are among the challenges facing markets. Investors must balance these shorter-term risks with the long-term return prospects of equities.