Authored by Edward Chancellor and Mike Monnelly of GMO, Feeding the Dragon: Why China's Credit System Looks Vulnerable Prologue For GMO's asset allocation team, valuations are our first protection against losses. We generally believe that cheaper assets are more resilient against bad economic and financial events, and that if we focus on avoiding the overvalued assets, we should not only achieve higher returns over time, but more often than not do less badly when markets encounter difficulty. From a valuation perspective, Chinese equities do not, at first glance, look to be a likely ... Read More