A Dynamic Credit Solution for a Dynamic World

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.

In an environment of elevated uncertainty and stretched valuations, liquid alternatives can offer a compelling way to enhance diversification, improve portfolio resilience, and pursue alpha.

In this webcast, Rick Friedman and Catherine LeGraw discuss how liquid alternatives can offer a compelling way to enhance diversification, improve portfolio resilience, and pursue alpha in an environment of elevated uncertainty an...

GMO Usonian raises concerns regarding Pacific Industrial's tender offer process and valuation.

GMO’s Focused Equity team shows how long-term investment success is driven more by strong business fundamentals than valuation changes, underscoring the importance of their high-quality focus.

Ben Inker and John Pease challenge the S&P 500's perceived superiority, arguing that non-U.S. stocks deserve a larger share of portfolios than they currently command.