For the benefit of our readers [attached] explains James O’Shaughnessy’s investment strategy. It concluded that high price-to-sales stocks do well in frothy, speculative markets (such as 1967 and the late 1990s) during which performance oriented fund managers are willing to pay any price for ‘concept’ and ‘New Era’ stocks (this is now also the case).
Their subsequent performance however, tends to be dismal - this particularly true when compared to low price-to-sales stocks. O’Shaughnessy further noted that it was more profitable to “choose stocks that are workhorses rather than showhorses.”
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
