OSAM offers views on issues and events shaping the market, emphasizing the importance of investing with a cool head and disciplined, time-tested strategies.
“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” —Mark Twain
Should investors pay higher fees to active managers in an attempt to beat the market? Or should they instead buy cheap passive index funds or exchange traded funds (ETFs)? The choice between the passive or active approach to investing can have a huge impact on long-term results. In this paper, we evaluate the arguments for each style, and argue for an approach that combines the strengths of both the passive and active approaches.
As appearing on The Wall Street Journal's MarketWatch
Twenty-five years after the crash of 1987, in a MarketWatch guest commentary, Jim O’Shaughnessy shares his research of the market’s long-term behavior in order to determine equity performance following crashes of similar magnitudes.
Jim O'Shaughnessy offers his thoughts on our Enhanced Dividend strategy and the importance on focusing on the long-term when investing.
Though U.S. stocks with high dividend yields have become very popular with individual and professional investors, OSAM makes the case for shareholder yield, a factor the Research Team has long advocated that has provided considerably stronger returns for U.S. stocks for more than 80 years. Shareholder yield is the sum
of a company’s dividend yield plus its buyback yield (the percentage of shares outstanding that have been repurchased or issued over the last year).
Jim and Patrick O'Shaughnessy describe the benefits of compositing value factors.
As appearing on TheStreet.com
As guest contributors to The Street, Jim and Patrick O'Shaughnessy discuss how the fourth edition of What Works on Wall Street can reveal ways to improve return and reduce volatility.
OSAM offers its thoughts on the current economic and market environment, and why the two don't necessarily correlate.
“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
—John Maynard Keynes
Jim O’Shaughnessy looks at historical returns for stocks and bonds in various inflationary environments, and what investors might expect going forward.
“The most common cause of low prices is pessimism—sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.”
In the face of so much grim economic news and uncertainty about the future, the OSAM Research Team reviews the historical implications of low economic growth, high unemployment, low consumer confidence and top marginal tax rates on future stock returns.
“Follow the course opposite to custom and you will almost always do well.”
— Jean-Jacques Rousseau
Jim O’Shaughnessy contends that income seeking investors should prefer high yield equities over traditional fixed income investments. In a study covering 1962 to 2009, Jim discusses why an income investor would have received substantially more income while also protecting principal purchasing power by investing in a high dividend strategy instead of traditionally recommended fixed income.
“The rational man—like the Loch Ness monster—is sighted often, but photographed rarely.”
— David Dreman
The return of fear has created an opportunity for the long-term equity investor to buy stocks at a major discount. This commentary by the OSAM Research Team may persuade clients to stay calm and, if possible, add to the equity market.
OSAM’s Research Team studies the performance of the market and our strategies during and after all bear markets since 1926.
Jim O’Shaughnessy shows how a move to overweight bonds versus stocks may prove to be disappointing over the next ten years.
Jim O’Shaughnessy reveals specific factors involved with the market upswing and shares the belief that over the next three, five and ten years, equities may be the best performing asset class and that investors might want to take the opportunity the market has given them.
Jim O’Shaughnessy studies how rare the current market downturn has been—and why it may present a once in a lifetime buying opportunity.
Jim O’Shaughnessy discusses opportunities in the current market conditions.
Jim O’Shaughnessy comments on what we might expect to happen in the coming 11 years. His analysis suggests that it is during this timeframe that we may find the silver lining that should give investors hope and encouragement.
Jim O’Shaughnessy comments on how investors might miss a buying opportunity of historic magnitude by letting market fear obscure the importance of a long-term perspective.
Jim O’Shaughnessy comments on the emotion of the current markets and what could happen next.
Jim O’Shaughnessy’s recent market research reveals that the current decade has been among the worst for investing in the past 110 years. See how investors in disciplined asset allocation strategies would have fared much better.
Jim O’Shaughnessy provides an update to his 2006 book Predicting the Markets of Tomorrow.
Read how to avoid the most common roadblocks to successful investing. Jim O’Shaughnessy's commentary explores the importance of knowing the facts and understanding history in order to overcome the seduction of rhetoric and emotion—common pitfalls that trip up many investors.