Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

GMO: "embrace career risk"

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

  • @David very interesting and timely. Thank you for sharing this
  • 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.
  • do we have link to GMO article/PDF?
  • edited March 19
    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.
Sign In or Register to comment.