Rethinking Global Allocations: Three Paths to Boost International Equity Exposure

GMO’s Asset Allocation team explores strategies for diversifying equity portfolios beyond the U.S., where valuations are elevated and concentration risk is growing.

• U.S. equities now represent ~75% of MSCI World, leaving investors exposed to stretched valuations, dollar strength, and policy volatility.

• International quality stocks offer durable business models and capital discipline as a complement to U.S. holdings.

• Value opportunities abroad remain at deep historical discounts, while Japan presents a country-specific case driven by corporate reform and shareholder-friendly practices.

How might reallocating globally enhance resilience and return potential? Explore the full report for actionable insights.