In our view, using quantitative methods in a transparent, repeatable way to extract alpha through diversified factor tilts offers a compelling alternative in this new IG environment.
GMO has posted a new 7-Year asset class forecast as of April 30, 2025.
Local currency rates and FX screen very attractive, while hard currency credit is neutral+.
GMO has posted a new 7-Year asset class forecast as of 1Q 2025.
The tariffs that the U.S. is imposing on its trading partners will bring about several costs that are important for investors to understand. Some of those costs are inherent to what a tariff is, while others stem from the fact that U.S. industrial policy has, and looks to continue to have, a huge amount of uncertainty associated with it.
While we sympathize with consumers who have had difficult interactions with the healthcare system, we believe that much of the antipathy toward health insurers is misplaced. Their role as middlemen is a vital and increasingly important one in a U.S. healthcare system that struggles to balance between the incentives of providers and consumers.
GMO has posted a new 7-Year asset class forecast as of February 28, 2025.
Ben Inker and John Pease look at the economics of trade and tariffs at a theoretical level and explain why broadly applied tariffs are a needlessly economically way to achieve U.S. goals.
In a world of rich valuations and heightened geopolitical uncertainties, we believe Japanese equities are well positioned to deliver attractive returns.
The value today of quality bond exposure in your high yield portfolio.
The perfect pairing for your U.S. large-cap portfolio?
GMO has posted a new 7-Year asset class forecast as of January 31, 2025.
We are observing a significant shift in global supply chains away from China, presenting a substantial investment opportunity. What are the reasons behind this shift?
Some allocators may focus their search efforts on corporate credit segments or simply a portfolio that can opportunistically trade across fixed income sectors.
Local currency rates and FX screen very attractive, while hard currency credit is neutral. In our Quarterly Valuation Update, we provide our Q4 assessment.
GMO has posted a new 7-Year Asset Class Forecast.
Over the last decade, U.S. large cap growth stocks have been far and away the best performing major financial asset in the world.
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.
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.
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.
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.
In theory, growing a pool of wealth over decades – whether for a family, an endowment, or a pensioner – is a straightforward endeavor.
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.
After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.
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.
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.
Local currency rates and FX screen attractive, while credit is neutral. In our Quarterly Valuation Update, we provide our Q2 assessment.
Explaining Strong Returns in the Face of Value Headwinds.
In this piece, we attempt to answer a number of questions we have gotten from clients about the impacts that rising levels of passive investing may have had on the stock market.
GMO has published a new 7-Year Asset Class Forecast.
GMO’s Small Cap Quality portfolio managers, Hassan Chowdhry and James Mendelson, discussed why small cap valuations are attractive today and why they believe using quality is a better way of investing in the asset class.
In September, we wrote a piece discussing some of the growing pains that have impacted clean energy in the last few years. Despite what we believe are compelling long-term growth prospects, the sector has continued to struggle over the past two quarters.
Local currency rates and FX continue to screen attractive, as credit spreads transition to neutral. As we look ahead to our Emerging Country Debt Strategy’s 30-year anniversary on April 19th, our team paused to reflect on how important our valuation metrics have been in discussions with our clients.
Despite strong gains in equity markets last year and year-to-date as well as indexes sitting at all-time highs, we are extremely excited about the investing landscape from an asset allocation perspective.
In a new piece, GMO’s long-term investment strategist Jeremy Grantham reexamines the ‘great paradox’ of the U.S. market.
In this paper, GMO proposes a novel approach to financing emerging countries’ transitions toward cleaner energy production. Indeed, we believe a significant opportunity exists across two dimensions: greenhouse gas (GHG) emissions reduction and investment returns.
In this paper, GMO proposes a novel approach to financing emerging countries’ transitions toward cleaner energy production.
Ratings are an important organizing principle in credit markets, often relied upon as a summary metric of default risk. While they offer a broad categorization, investors in credit markets must rely on much deeper analysis to measure and price the actual default risks involved.
Your active managers are more competent than they look.
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.
