AI has made stocks historically expensive, so invest in these 2 areas instead, GMO says

AI has made stocks historically expensive, so invest in these 2 areas instead, GMO says

REUTERS/Brendan McDermidGMO says investor excitement in AI has inflated stock valuations, making future returns unattractive.The firm, which oversees $64 billion, says US stock valuations are in the 90th percentile compared to history.GMO likes international and deep value stocks as alternatives to broad US indexes.GMO's John Pease doesn't love what the massive rally in AI stocks has done to broader market conditions.While he stops short of call…