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The S&P 500 faces negative returns in 2026, GMO warns

Summary by Business Insider
ANGELA WEISS / AFP via Getty ImagesGMO's Ben Inker predicts weak S&P 500 returns due to high AI stock concentration.Inker expects a market rotation from expensive AI stocks to cheaper sectors in 2026.He favors Japanese small-cap stocks and European value stocks over US growth stocks.If you're familiar with GMO, the asset management house cofounded by value investing legend Jeremy Grantham, you know the firm tends to issue bearish forecasts for t…

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Business Insider broke the news in United States on Friday, December 26, 2025.
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