Predicting the Markets of Tomorrow : A Contrarian Investment Strategy for the Next Twenty Years
A unique and timely new wealth-building strategy from a legendary investment guru In his national bestsellers How to Retire Richand What Works on Wall Street, portfolio manager extraordinaire James P. O�Shaughnessy offered investors practical advice based on rigorous quantitative analysis�advice that has consistently beaten the market. But in a recent analysis of market data, O�Shaughnessy uncovered some astonishing trends not discussed in his previous books. The Markets of Tomorrowexplains O�Shaughnessy�s new research and tells ordinary investors what they must do now to revamp their portfolios. According to O�Shaughnessy, the year 2000 marked the end of a twenty-year cycle that was dominated by the stocks of larger, fastergrowing companies like those in the S&P 500. In the new cycle, the stocks of small and midsize companies are the ones that will outperform the market, along with large company value stocks and intermediate term bonds. O�Shaughnessy describes the number crunching behind his analysis and then shows individual investors exactly how to select the right mix of investments and pick top-performing small and midcap stocks.
A Bear Stearns executive and bestselling financial adviser, O'Shaughnessy (How to Retire Rich) is a self-described "passionate advocate" of paying attention to the stock market's historical trends rather than impulsively reacting to short-term fluctuations. Though the technology bubble of the '90s led many to believe the financial rules had changed, O'Shaughnessy still believes that the soundest investment lies not in chasing the fastest-growing big stocks, but in careful management of holdings in small and midsize companies, with large companies selected for value rather than expansion. Buttressed by an array of financial charts, he discusses how to create a set of investment portfolios-some with as many as 25 separate stocks-that with annual tinkering will yield effective results over a two-decade period. His advice tends toward technical precision; when discussing intermediate bonds, for example, he recommends a laddered portfolio that continually frees up assets for potential reinvestment in the event of changing interest rates. Although he speaks briefly to the emotional reasons why most investors are unable to resist the allure of short-term gains, O'Shaughnessy is primarily concerned with the cold, hard facts that will trump sentiment, and he lays out his positions in a straightforward and effective manner. (Mar. 2.) Copyright 2006 Reed Business Information. -- PUBLISHERS WEEKLY.
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March 02, 2006
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