GMO Quarterly Letter | 1Q 2017

This Time Seems Very, Very Different

Part 2 of Not with a Bang but a Whimper - A Thought Experiment

Executive Summary

There are two important things to carry in your mind: First, the market now and in the past acts as if it believes the current higher levels of profitability are permanent; and second, a regular bear market of 15% to 20% can always occur for any one of many reasons. What we are interested in here is quite different: a more or less permanent move back to, or at least close to, the pre-1997 trends of profitability, interest rates, and pricing. And for that it seems likely that we will have a longer wait than any value manager would like.

Download to read the full article.

Register for full access to GMO's Research

Please enter a valid email address

Please enter a First Name

Please enter a Last Name

Please enter a Company

Investor Type Required

Country Required

* Indicates required field