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GMO: "embrace career risk"

David_Snowball
in Fund Discussions
from GMO chief strategist James Montier (whose profile pic has him wearing a freakish Hawaiian shirt):
Emerging markets are trading on a Shiller P/E of 13x. This is the level of valuation that generally gets me excited. We have not experienced permanent impairment of capital from this level outside of markets that have shut down due to war. This doesn’t guarantee short-term returns or that we have reached a bottom: cheap stocks can always get cheaper. But it does provide a compellingly attractive entry point for those with a long horizon.

Even better are the value stocks within emerging markets, which trade on single-digit Shiller P/Es. So, embrace career risk, dare to be different, and recall the motto of the Special Air Service: Who Dares Wins.

Comments

  • MikeW
    @David very interesting and timely. Thank you for sharing this
  • expatsp
    I've been debating whether to just buy GPGCX or instead buy a mix of GPGCX and SIVLX with some of my dry powder. This quote makes me lean to the latter.
  • VintageFreakVintageFreak
    do we have link to GMO article/PDF?
  • David_Snowball
    edited March 2020
    Embrace career risk.

    That might or might not require a free site registration. It let me in seamlessly but I'm there a lot and so might have some auto-logon set. Regardless, easy to get to.
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