A Dynamic Credit Solution for a Dynamic World

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.

After a mega-run of outperformance in U.S. vs. non-U.S. equities, investors are seeking more balanced exposures. We offer three ways to boost international equity: quality, deep value, and Japan.

With spreads in most credit markets at or close to historically tight levels, we explain how credit investors can navigate the current environment from a valuation perspective.

We offer solutions to help investors navigate the current market excess.