Client Center

Financial Alternatives News and Insights

Integrated Wealth Management
Modern Portfolio Theory is Dead...?

At a recent luncheon, I watched the Chief Investment Officer of Northern Trust make arguments that seem all too common this year. His main point was that using Modern Portfolio Theory (MPT) is "the old way of doing things" because in 2008, assets that should have zig-zagged independently all dropped last year. The implication, of course, is that diversification failed when it was needed most, and that asset allocation doesn't work.

Read More