for over 40 years
The signs of speculative excess in the stock market today are obvious. Speculative booms provide entertainment and outsized profits while they are happening, but they do generally burst painfully. The stock market is a particularly dangerous place to tread when speculative activity starts to overwhelm investing activity.
GMO Climate Change
Lucas White, lead portfolio manager of GMO’s Climate Change Strategy, recently sat down with Barron’s to discuss the Strategy’s investment thesis and positioning, and explain how the Strategy gained 115% over the 1-year period from the end of the first quarter 2021, net of fees.
An Emerging Markets ex-China strategy is critical to precisely target the China allocation in EM investments. For active managers running an EM ex-China strategy, top-down country and sector allocation is an indispensable source of alpha. Read our latest Insights paper to learn more.
GMO’s Emerging Markets ex-China Strategy uses a process emphasizing top-down allocation, the same process we have run in our broad Emerging Markets Strategy for almost 30 years.
Despite the common assumption that Growth stocks are longer duration than Value, this analysis shows that their durations are much closer than most realize. We expect Value to outperform the market over the next few years, and that belief neither assumes nor requires any particular moves in interest rates.
In his latest Viewpoints piece, Jeremy Grantham warns that the market is now checking off all the touchy-feely characteristics of a major bubble. Given his experience as a historian of markets, we would be wise to listen.
Click here to read the full article.