Part 1: THE VALUE OPPORTUNITY UPDATED After a Good Run, Value Looks Anything but Exhausted

GMO

Research

12 Pages

GMO revisits value versus growth and argues the value opportunity still looks unusually compelling, even after a strong relative run. A provocative twist is that value can win by avoiding disasters, not by finding obvious winners. They also claim much of a typical value portfolio may not actually own the cheapest stocks.

Source: GMO
Source: GMO

Key Takeaways

Value still cheap Recent outperformance has not closed the valuation gap, in their view.
Deep value focus: The most attractive opportunity concentrates in the very cheapest stocks, not broad value baskets.
Global nuance: Value looks broadly appealing outside the US, with regional spreads shaping implementation choices.
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