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