James O’Shaughnessy: Long Duration Bond Holders In Trouble if Federal Reserve Raises Interest Rates

from WallStForMainSt

lass=”” >Jason Burack of Wall St for Main St interviewed first time guest, pioneer of quantitative equity analysis for stocks, author of multiple best selling investing books and CEO of O’Shaughnessy Asset Management http://www.osam.com/, James O’Shaughnessy. James’ firm has over $5 billion assets under management.

His full bio is here: https://en.wikipedia.org/wiki/James_O…

James’ books can be purchased here: http://www.amazon.com/James-OShaughne…

Definition of Quantitative Analysis: http://www.investopedia.com/terms/q/q…

During this 30+ minute interview, Jason starts off by asking Jim about his background and how he became interested in investing and finance?

Jim talks about how his father and his father’s friends would sit around discussing the management teams of companies they were investing in and considering investing in. James always thought these were the wrong way to invest so he started researching the 30 DOW stocks at his local library in Minnesota as a teenager. When he got to collect computers were becoming far more powerful and useful so he was able to to research using computers and go through a lot more data to find good stocks to invest in.

Jim talks about the types of fundamentals his quant research finds and how the best companies to invest in possess certain types of fundamentals.

James talks about how people, including financial professional, destroy their own investing returns by relying on their emotions like fear, greed and hope to make irrational decisions.

Jason then asks Jim about how his investing methodology differs from conventional value investors like David Einhorn or Bill Ackman and if legendary value investor Benjamin Graham was a quant?

James talks about how all the best long term value investors are all very disciplined, can control their emotions and have an extensive checklist of items they need to see in a company before they invest.

Next, Jason asks Jim why most investors and money managers underperform in markets?

Jim talks about how investors often miss key data or rely on certain data way too much in addition to not controlling their emotions.

Next, Jason asks Jim if the current environment for stocks is different than past bull markets or bear markets he has experienced?

To wrap up the interview, Jason asks Jim about shorting the stock market and being long gold like George Soros, Carl Icahn, Stanley Druckenmiller and Paul Singer? Also, if he was re-writing his contrarian investment book in 2016 instead of 2006 what investments would be good ones for contrarians now?

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