“It takes little experience in the investment business to realize that investors prefer good news.”

And there is a lot more in this quarter’s latest paper where they cover everything from the US Economy to Emerging Markets, see below for some snippets & the link to the rest of the letter:

• “The short answer to these questions is that while emerging markets “deserved” some of their bad luck over the last several years and the outperformance of the U.S. has made some sense, we do not believe that emerging is a value trap, nor do we believe that the U.S. has proved itself particularly extraordinary”
• “Certainly there is no strong evidence that would cause us to believe the U.S. is truly deserving of trading at a higher P/E than the rest of the world”

Source: GMO