GMO: markets ‘increasingly out of step with the real world’

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By Jasper Cox
27 May 2020

Equities and investment-grade bonds are overpriced in developed markets, according to Tommy Garvey, member of the asset allocation team at GMO. The US-based investment firm has just slashed its exposure to developed equity markets.

GMO, co-founded by Jeremy Grantham, makes investment decisions based on longer-term valuation expectations and where it reckons asset prices will eventually revert to, rather than short-term factors.

Grantham is regarded as a bearish investor who successfully predicted the last financial crisis.

GMO added risk when markets crashed in the first ...

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