Predicting the Markets of Tomorrow A Contrarian Investment Strategy for the Next Twenty Years

by O'Shaughnessy, James P.

• ISBN13: 9781591841081
• ISBN10: 1591841089
• Format: Hardcover
• Copyright: 2006-03-02
• Publisher: Portfolio Hardcover

Summary

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.The Markets of Tomorrowis a loud and clear call to action for every investor who doesn’t want to be left behind. Praise for James P. O’Shaughnessy: What investment strategies have worked over the past forty years? Ask this man.” —Barrons You ignore his message at the risk of your own future wealth. His trailblazing research suggests new ways to invest.” —Kiplinger’s Personal Finance Magazine

Author Biography

James P. O-'Shaughnessy is senior managing director at Bear Stearns and the director of systematic equity for Bear Stearns Asset Management. He manages five mutual funds and separately managed portfolios for individuals and institutions. The author of How to Retire Rich and What Works on Wall Street, he has been profiled and interviewed widely in the media.

Table of Contents

Preface	v
Acknowledgments	xi
1. The Perfect Storm	1	(16)
2. Where You Start Determines Where You End Up	17	(36)
3. Salvation from Small Stocks	53	(20)
4. Showdown: Large-Cap Growth Versus Value	73	(26)
5. Which Bonds Are Right for My Portfolio?	99	(16)
6. Behavioral Economics: Why We Know What Isn't So	115	(20)
7. Demographic Trends: Friend or Foe?	135	(12)
8. Roll Your Own: Using Stock Selection Strategies to Improve the Odds	147	(30)
9. Using Mutual Funds and Exchange Traded Funds	177	(12)
10. 401(k)s: Tax-Advantaged Savings Work	189	(12)
11. Allocating Your Assets: The Best Portfolios for the Next Twenty Years	201	(24)
12. Putting It All Together	225	(12)
13. The Fast Approaching Future: The Markets of Tomorrow Will Soon Be the Markets of Today	237	(15)
Index	252