O'Shaughnessy Asset Management conducts ongoing research on the stock market,
the concepts of long-term, disciplined investing and our investment strategies.
We routinely look for ways to help communicate and improve our existing
approach. We are also researching successful, empirically tested stock selection
ideas for new strategies, and will publish these periodically.
January 2012
In this paper OSAM reviews the prospects for the major asset classes comprising investor portfolios: stocks and bonds. We then look at one of the most tried-and-true investment strategies of all time: dividends. But with a caveat — global dividends. We conclude with a study from 1977 to 2010 demonstrating why income investors should include equity dividends in their portfolio.
November 2009
Learn how anomalous trends have contributed to the recent underperformance of the All Cap Core strategy and why we do not expect these trends to continue.
September 10, 2009
Despite the recent trend of low-momentum stocks outperforming high-momentum stocks, buying recent winners has proven itself over more than 80 years to be one the most effective stock selection strategies. Momentum-based strategies currently offer a phenomenal "buy low" opportunity.
September 9, 2009
See why history tells us that investing in stocks with high dividend yields is a great way to beat the market following recessions.
April 2008
“Be fearful when others are greedy and greedy when others are fearful.”
— Warren Buffett
A study of the American Association of Individual Investors' (AAII) "Investor Sentiment" poll from 1987-2008 (survey is available to AAII members at their website), provides solid evidence for Buffett's principle, especially as it pertains to growth investing. The average rolling one- and three- year returns to indices or strategies bought during times of prevalent bearish sentiment were all superior to their long term one- and three- year averages. The outperformance was most significant for growth strategies. For example, if you bought the Russell 2000 Growth during these periods of investor malaise, the average one year return would have been 7.36% better than the overall average one-year return between 1987 and 2008. The opposite holds true during very optimistic times. All strategies (with the exception of Market Leaders Value) underperformed their long term average following periods when investors were the most hopeful. The data leads to a simple conclusion: when people are overly excited about the market, buy value. When they panic, buy growth. Market Leaders Value is a strong strategy regardless of investor sentiment—it is the one exception to the rule. Click here to download the rest of the study.
Investors should keep in mind that there is no certainty that any investment or
strategy will be profitable or successful in achieving investment objectives. Past
performance is not an indication of future results.