Disciplined amid Disruption

With more than 30% of U.S. market capitalization now trading above 10x sales, today’s market reflects more than optimism—it reflects risk.

GMO's 7-Year Asset Class Forecast as of November 30, 2025.

At GMO’s 2025 Conference, our investment leaders shared candid, deeply researched perspectives on today’s market complexities.

Avoiding bubbles and dislocations to mitigate large drawdowns.

In uncertain times, quality matters more than ever. Discover why high-quality companies have delivered superior returns and resilience through market cycles, and how GMO leverages this enduring advantage for investors.

In GMO’s Quarterly Letter, Ben Inker offers agnostic investors a guide to navigating the AI boom—bubble or not—based on a taxonomy of 21st-century bubbles and plenty of risk assets to choose from.

GMO's 7-Year Asset Class Forecast as of October 31, 2025.

Investment theory would have you believe that asset allocation is a relatively simple affair, but it can be far more complex. We believe a dynamic approach can help.

In GMO’s latest Quarterly Valuation Update, local currency rates and FX screen very cheap, while hard currency credit is rich.

By avoiding expensive assets and capitalizing on undervalued opportunities, a valuation-aware, dynamic asset allocation strategy can help investors navigate market cycles with more resilience.

GMO's 7-Year Asset Class Forecast as of September 30, 2025.

In our view, the credit spread for hard currency EMD—which has generally overpaid investors for actual riskiness—warrants an “always on” strategic allocation.