US Growth Stocks To Lose Their Crown To International Value In Coming Years | John Thorndike, GMO
The latest outlook from Jeremy Grantham's firm
I always say the most valuable people to interview are capital allocators, because they have to answer to their clients for their market calls.
They are judged not by their opinions, but by their results.
Today, we’re fortunate to hear from one of the most-respected capital management firms in the world: Grantham, Mayo, Van Otterloo (GMO) -- which was co-founded by the great investor Jeremey Grantham and currently manages over $65 billion of client assets.
Specifically, we’re sitting down with John Thorndike Co-Head of Asset Allocation, who co-manages GMO’s Dynamic Allocation & International Value ETFs.
We’ll discuss GMO’s outlook for 2026 and where the firm sees the biggest risks & opportunities for investors.
John sees that International Value stocks are set to outperform US Growth stocks in coming years.
To find out why and how GMO is currently positioned, click here or on the video below:
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EXECUTIVE SUMMARY:
GMO sees a highly uncertain global economy with significant dispersion across asset classes: concentrated overvaluation in AI-related U.S. large caps versus attractive opportunities in non‑U.S. and value equities.
GMO compares today most closely to the 2000 tech bubble: a focused bubble in a sector (AI) while many other areas offer good expected returns.
The firm is positioned as follows:
