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Expert Urges Shift to Undervalued Stocks Amid High Valuations

11/10/2025

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Summary

Story summary

John Thorndike, GMO co-head of asset allocation, advises avoiding the market’s most expensive parts while staying fully invested.
He notes U.S. growth stocks, especially AI-related ones, have high valuations while value stocks trade at discounts.
GMO Dynamic Allocation ETF (GMOD) aims to navigate these conditions by shifting investments toward undervalued assets.
Thorndike highlights Japan as an attractive market due to improving returns and favorable exchange rates.

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Story summary

John Thorndike, GMO co-head of asset allocation, advises avoiding the market’s most expensive parts while staying fully invested.
He notes U.S. growth stocks, especially AI-related ones, have high valuations while value stocks trade at discounts.
GMO Dynamic Allocation ETF (GMOD) aims to navigate these conditions by shifting investments toward undervalued assets.
Thorndike highlights Japan as an attractive market due to improving returns and favorable exchange rates.