GMO: "A Once-in-a-Generation Opportunity"

Author

The Idea Farm
January 21, 2024

“The purpose of volatility is to make people make stupid decisions.”

Jared Dillian

Research

GMO compares two ways to take advantage of the USD’s richness versus emerging market currencies: EM equities and EM local currency debt. They believe EM local currency debt deserves a prominent place in portfolios today due to relative value, diversification and potential alpha.

J.P. Morgan published an updated Guide to the Markets to start 2024.

Facts & Figures

“The United Nations food agency's world price index ended last year about 10% below its 2022 levels.” Link

"There are 17 American men in history who have run under 2:10 in the marathon. There were 32 Kalenjin (an East African tribe) who did it in October of 2011." Link

“The Bloomberg Magnificent 7 Price Return Index more than doubled in 2023, contributing to a gain of 54% for the Nasdaq 100 Index. An equal-weighted version of that index, however, gained less than 33%, while an index of small-cap tech rose less than 21%.” Link

The Periodic Table of Commodity Returns from 2014 - 2023. Link

“A staggering 19.6% of office space in major U.S. cities wasn’t leased as of the fourth quarter, according to Moody’s Analytics, up from 18.8% a year earlier. That is slightly above the previous records of 19.3% set in 1986 and 1991 and the highest number since at least 1979, which is as far back as Moody’s data go.” Link

Podcasts

1/6/24 - 88 minutes

These four had an entertaining and informative conversation on the state of startups, AI & venture capital today.

1/11/24 - 55 minutes

Ashby Monk & David Weisburd discuss the role and operation of asset owners like pension funds and endowments, their compensation structures, the state of US pensions, & more.

9/20/23 - 102 minutes

In a rare media appearance, Tom Brady talks about motivation, his leadership philosophy, what goes into creating a strong culture, and the pursuit of excellence.

What Else Is Happening

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