for over 40 years
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.
After more than a decade of disappointing performance, Value stocks just experienced their worst 12-month performance in history. This has left these stocks trading at some of the cheapest levels relative to the market we have ever seen.
Value is extraordinarily cheap today, and we believe expensive Growth stocks are in a bubble similar the TMT bubble in 2000. We recently launched the Equity Dislocation Strategy to profit from this opportunity by intelligently being long undervalued stocks and short overvalued stocks globally.
Jeremy Grantham spoke with CNBC’s Closing Bell about the need for a new “green” Marshall Plan in the U.S. to combat climate change and accelerate economic growth. He also believes the stock market is in a bubble, and he sees opportunities in emerging markets and Value equities.
State-owned Enterprises make up roughly half the opportunity set in the EM sovereign and corporate debt universes. GMO has been investing in SOEs since 1994. Mustafa Ulukan and Sergey Sobolev, from our Emerging Country Debt team, describe in this white paper why SOE default risk is chronically overestimated, which offers us opportunity as long-term investors to generate sustainable excess SOE debt returns.
“The slow, haphazard COVID-19 response has reminded us how hard it is to stop a global threat. Climate change is an even greater danger to our future. Combatting it will require much more cooperation and investment, and we’re already further behind in the fight.”
- Jeremy Grantham
The GMO Climate Change Investment Fund invests in companies that are poised to benefit from addressing environmental challenges created by climate change or improving resource consumption efficiency.