CNBC PRO Talks

PRO Talks: GMO's Catherine LeGraw on emerging markets, trade tensions and valuations

GMO Asset Allocation strategist Catherine LeGraw shared her thoughts on where investors can find the best deals globally in an exclusive interview for CNBC PRO with Mike Santoli.

LeGraw explained that while U.S. stocks may be of higher quality on average, investors should look overseas for more compelling opportunities. She recommended stocks in Europe, Asia and Japan — as well as emerging markets — instead of paying a "massive premium" for the U.S. market.

She also noted that a value strategy may be better than a growth play despite recent gains in the technology sector, an industry marked by reinvestment and lower dividends.

LeGraw is a member of GMO's Asset Allocation team. Prior to joining GMO in 2013, she worked as a director at BlackRock. Previously, Ms. LeGraw was an analyst at Bear, Stearns & Co and she is a CFA charterholder.

As of March 2018, GMO had $71 billion in assets under management.

LeGraw also discusses:

  • Factors that undermine lofty U.S. stock valuations
  • Why the U.S. may have the most to lose in a prolonged trade war