Jeremy Grantham's right-hand man Ben Inker shares 5 trades to start making now for the best returns and smallest downside risk in the cheapest parts of the market
Global value and emerging market value stocks carry the most weight in the strategy among these five factors at 20% and 16%, respectively. The other three factors are all weighted at 6% or lower. Inker's bullishness on the above factors isn't a signal that he believes the global bear market is over. In fact, he and his firm think some broader equity indices like the S&P 500 may still have big downside.
But in addition to having a better long-term return outlook, Inker listed other reasons it's better start buying these factors now. "As bear markets age, valuation tends to become an increasingly important driver of defensiveness," he said."In the bursting of the internet bubble of 2000 for example, emerging equities fell even harder than the S&P 500 in the beginning of the bear market. But in 2001 and 2002, when the S&P 500 fell by a further 31.4%, MSCI Emerging fell only 8.6%, as cheap valuations made the group increasingly resilient to the general selling pressure.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Joy of missing out’: Here’s the silver lining after 2022’s stock-market ‘nightmare,’ says GMO’s Ben InkerA silver lining appears to have formed around 2022’s market carnage, in the view of Ben Inker, co-head of GMO's asset allocation team.
Read more »
3 Ways to Be Happier by Living More Like a MillionaireWhy the most important differences between the lifestyles of wealthy people and everyone else aren't about money but time
Read more »
Ben Stiller and Christine Taylor Reveal They Were Each Other's 'Rebound'Ben Stiller and Christine Taylor tied the knot one year after they met despite not taking their relationship 'seriously' at first — details
Read more »
Ben Affleck Has a Friendly Chat With Jennifer Garner's BoyfriendThe happy interaction comes several months after Affleck's new wife, Jennifer Lopez, praised Garner as an 'amazing co-parent.'
Read more »
Nets’ Ben Simmons to miss Celtics game with ‘knee soreness’Despite showing some signs of progress, Ben Simmons will miss Wednesday night’s game in Boston — his third in a row.
Read more »