GMO recently released its Q3 2019 quarterly letter titled – Shades of 2000, which reports that value investors could be seeing the best opportunity set in the past 20 years. Here’s an excerpt from the letter:
The years leading up to the 2000 stock market bubble were extraordinary and unprecedented. They caused unique pain to the portfolios of valuation-driven investors. The valuation extremes, though, created the greatest opportunity set for valuation-driven investors since the Great Depression.
While the events of the last decade have not been as striking as those of the late 1990s, the recent cycle has gone on for significantly longer and the pain caused to our portfolios has begun to approach 1990’s levels. As the current cycle has ground on slowly but surely, the valuation extremes have moved wider, creating an opportunity set for valuation-driven investors that looks as extraordinary as what we saw 20 years ago.
You can read the entire letter here – GMO Q3 2019 Quarterly Letter.
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