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.
China’s overall manufacturing overcapacity has peaked as global demand picks up in consumer sectors, the Economist Intelligence Unit said, predicting trade tensions will persist due to Chinese companies’ rising competitiveness.
Quality companies have long-term, durable business models and capital discipline, with proven track records. A strategy built around Quality that also considers valuation can mitigate risk and enhance returns.
Join the experts at GMO for a look at their robust Quality strategy that leverages four decades of Quality investing experience, blending quantitative discipline and fundamental analysis.
Investing in high-quality businesses that generate high and durable profits has added value through various market environments. Quality firms have capital discipline and are thinking long term, providing steady and robust returns. Today, with uncertainty high, Quality investments can mitigate risk and protect capital.
Join the experts at GMO and VettaFi for a webcast that digs into the benefits of Quality and outlines a strategy that seeks to invest in companies with a track record of success at attractive valuations.
A measure of foreign investment into China turned negative for the first time since records began in 1998, highlighting how foreign companies are pulling money out of the country due to geopolitical tensions and higher interest rates elsewhere.
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.
Rising rates hurt investors; claims on profits in the future are simply worth less if you discount them at a higher rate.
Since Wuhan two years ago, China has had relative success in minimizing disruption by bringing virus cases quickly under control. Now, the geographic spread of infections and higher transmissibility of the omicron variant is challenging the country’s hawkish pandemic strategy of aggressive testing and locking down whole cities or provinces.
April 3rd marked the 1-year anniversary of the first investments deployed by GMO’s Quality Cyclicals Strategy,1 within a fortnight of the trough that ended 2020’s quickfire bear market.
The policy proposal of "Medicare for All" calls for nationalizing the U.S. health insurance system. While this is a politically unlikely outcome, the stock prices of the private sector Managed Care insurance companies have suffered as rhetoric heats up.
Ten years into a bull market, the conventional wisdom is that U.S. stocks are richly valued based on most well-cited metrics. Fortunately, solid investment opportunities remain in places that some value investors may find surprising. This is why the GMO Quality Strategy remains fully invested in equities. We invest globally, yet the portfolio holds primarily U.S. domiciled companies.
