In GMO’s 3Q 2025 Quarterly Letter, Ben Inker and John Pease deconstruct 15 years of S&P 500 outperformance versus global peers, highlighting its narrow drivers and questioning its sustainability.
-
Roughly 80% of U.S. equity outperformance stemmed from dollar strength and valuation expansion—factors unlikely to repeat.
-
Fundamental gains were concentrated in the “Magnificent Six,” while the median S&P 500 company delivered historically weak growth.
-
International equities now trade at a 30–50% discount, with improving fundamentals and potential FX tailwinds.
Could regional diversification finally tilt in favor of non-U.S. equities? Explore the full letter for insights.
Om dit artikel te lezen heeft u een abonnement op Investment Officer nodig. Heeft u nog geen abonnement, klik op "Abonneren" voor de verschillende abonnementsregelingen.
