Ben Inker Is Looking For "Bad and Ugly" Investments Outside U.S.

Ben Inker likes to invest in beaten down regions, which is why he is shifting out of the expensive U.S.

Profits in U.S. stocks have compounded at 11 percent over the last four years, while GDP growth has not kept pace at just 2.2 percent over the same period, Ben Inker, head of GMO’s Asset Allocation team noted in the fund’s quarterly letter.

GDP growth and stocks are not exactly pegged to one another

He said investing in a country because you expect it to have strong GDP growth in the long term is a bad idea, and this is true even if the prediction is an accurate one.  The most significant factor for the “non-intuitive result,” according to Inker,...