O’Shaughnessy: Leverage Responsible for Downturn but Stocks are “Compelling”

In a recent Reuters article, James O’Shaughnessy, chief investment officer of O’Shaughnessy Asset Management, says that lofty amounts of leverage was one of the major reasons for the current bear market and recession. But, O’Shaughnessy said that “stocks are now at their most compelling valuations since 1982. And Wall Street can come back too, with a modicum of temperance.” In September of this year, O’Shaughnessy wrote an excellent piece on this web site. The report, titled “The Only Thing We Have to Fear Is Fear Itself”, makes the argument that large stocks are due for some strong gains over the […]