The New Rules for Investing Now Smart Portfolios for the Next Fifteen Years

by O'Shaughnessy, James P.

• ISBN13: 9781591841487
• ISBN10: 1591841488
• Edition: Reprint
• Format: Paperback
• Copyright: 2007-04-24
• Publisher: Portfolio Trade

Summary

A unique and timely new wealth-building strategy from a legendary investment guru When the dot-com bubble burst, many investors assumed that it was just another temporary setback for the mighty S&P 500, which had just enjoyed its best twenty-year real rate of return in over a century. But James P. O’Shaughnessy, the bestselling author of What Works on Wall Streetand How to Retire Rich, doesn’t trust assumptions; he does rigorous analysis. After digging into the long-term cyclical patterns of the last hundred years, he concluded that almost every lesson” investors learned in the past twenty years no longer applies. If you think you can protect your money by focusing on safe” large-cap stocks and mutual funds, you’re in for a big disappointment. In the new cycle now under way, the stocks of small and midsize companies will consistently outperform the large-cap growth stocks of the S&P 500. Large company valuestocks and intermediate term bonds will also do better than expected. The New Rules for Investing Nowexplains how the investment landscape has changed—and what you should do about it.

Author Biography

James P. O-'Shaughnessy is a pioneer in quantitative equity analysis, and the bestselling author of How to Retire Rich and What Works on Wall Street. He manages mutual funds and portfolios for individuals and institutions, and he has been profiled and interviewed extensively in the media.

Table of Contents

Preface	p. v
Acknowledgments	p. xi
The Perfect Storm	p. 1
Where You Start Determines Where You End Up	p. 17
Salvation from Small Stocks	p. 53
Showdown: Large-Cap Growth Versus Value	p. 73
Which Bonds Are Right for My Portfolio?	p. 99
Behavioral Economics: Why We Know What Isn't So	p. 115
Demographic Trends: Friend or Foe?	p. 135
Roll Your Own: Using Stock Selection Strategies to Improve the Odds	p. 147
Using Mutual Funds and Exchange Traded Funds	p. 177
401(k)s: Tax-Advantaged Savings Work	p. 189
Allocating Your Assets: The Best Portfolios for the Next Twenty Years	p. 201
Putting It All Together	p. 225
The Fast Approaching Future: The Markets of Tomorrow Will Soon Be the Markets of Today	p. 237
Index	p. 252
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