Commentary

The Future of the Inflation Reduction Act

Republicans have lashed out at the Inflation Reduction Act (IRA), a landmark package of incentives for clean energy, since it was passed two years ago.

Commentary

GMO 7-Year Asset Class Forecast: October 2024

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

Commentary

Quality: The Real McCoy

At GMO we have spent the last four decades taking a long-horizon approach to equity investing. Over time, a unique and reliable group of standout companies emerged from our research.

Commentary

Don’t Miss Out

Deep value stocks are GMO Asset Allocation’s highest conviction investment idea. In a world where many stocks are being driven ever higher by positive sentiment and investor optimism, some fundamentally sound but unloved companies are being left behind, consequently trading at extraordinary discounts.

Commentary

GMO 7-Year Asset Class Forecast: 3Q 2024

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

Commentary

Misguided Mayhem

In the last year, we’ve written about the poor performance of clean energy, while highlighting the strong long-term outlook for the sector and the attractive valuations. These are typically the sorts of things we focus on…valuations and the long-term fundamental prospects for companies. We tend to shy away from overanalyzing short-term market dynamics.

Commentary

A Second Opinion Is Just What the Doctor Ordered

In theory, growing a pool of wealth over decades – whether for a family, an endowment, or a pensioner – is a straightforward endeavor.

Commentary

The What-Why-When-How Guide to Owning Emerging Debt

As GMO celebrates its 30th anniversary managing emerging debt this year, we offer our comprehensive guide to emerging debt markets. Given the tumultuous recent events – a global pandemic, defaults, repricing of interest rates, relentless strength in the U.S. dollar – we’ll focus on the Why as a starting point. Then we’ll dive into the proliferating How, covering strategies and vehicles.

Commentary

GMO 7-Year Asset Class Forecast: August 2024

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

Commentary

Small Wonders: Overlooked Japan Small Caps Poised for Resurgence

After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.

Commentary

Deep Value

Deep value stocks are currently our highest conviction long-only investment idea. For the avoidance of any doubt, when we talk about “deep value,” we simply mean stocks that are cheap, often screamingly so, relative to our appraisal of their fair value. We do not care about a “growth” or “value” label that has been assigned, sometimes seemingly arbitrarily, by one index provider or another.

Commentary

GMO 7-Year Asset Class Forecast: July 2024

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

Commentary

Concentrate!

Like you, we have read countless comparisons between today’s enthusiasm for all things AI and the top of the TMT bubble in 2000, with the implication being that stocks are on thin ice.

Commentary

Valuation Metrics in Emerging Debt: 2Q24

Local currency rates and FX screen attractive, while credit is neutral. In our Quarterly Valuation Update, we provide our Q2 assessment.

Commentary

Equity Dislocation

Explaining Strong Returns in the Face of Value Headwinds.