Focus On Value Investing

Jim O'Shaughnessy believes the bad news is near out of the bank stock and finanical companies but homebuilders may have a rough time to come.

From Reuters: "I think that financials are now looking attractive again," O'Shaughnessy, who uses a value-tilted quantitative strategy, said at the Reuters Investment Outlook Summit in New York.

He said that with the huge write-offs some banks and other financial companies have taken because of losses in mortgage-related securities, it is now near a point where the bad news is out.

O'Shaughnessy said he has been buying banking stocks in Australia, one of three countries that have the largest allocation outside of the United States in his global strategy.