Disciplined amid Disruption

AI capex is surging. Yet, history shows investment booms often precede recessions and lower equity returns across most developed markets.

GMO's 7-Year Asset Class Forecast as of February 28, 2026.

GMO’s Asset Allocation team discusses the lottery like appeal of growth stocks, how it often leads to lower returns, and why today’s valuations favor value.

In this year-end letter, John Thorndike, Warren Chiang, and George Sakoulis discuss GMOV and GMOI results for 2025 and their outlook for 2026.

GMO’s Structured Products team explores how high quality structured credit can improve carry, reduce spread risk, and strengthen downside protection when spreads are tight.

For investors, the real opportunity in investing in AI lies in distinguishing between companies with durable competitive advantages and those exposed to the boom-and-bust cycle.

In this year-end letter, Doug Francis and Cole Weppner discuss Event-Driven Strategy results for 2025 and their outlook for 2026.

In this year-end letter, Ben Inker and George Sakoulis discuss Equity Dislocation’s results in 2025 and their outlook for 2026.

GMO's 7-Year Asset Class Forecast as of January 31, 2026.

In this year-end letter, the Focused Equity team discusses Quality Strategy results for 2025 and their outlook for 2026.

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

Jeremy Grantham and Edward Chancellor examine today’s AI boom through market history, valuation, and past manias.