By Steve Blumenthal
August 29, 2013
Following is an excerpt from the piece that highlights the issues MPT is facing today:
The conversation you should have with your clients is not that modern portfolio theory (MPT) is wrong, rather that it’s time to question whether 60/40 remains the best way to optimize the risk-reward relationship. This asset mix is simply too narrow in the current low-dividend-yield, low-inflation, low-interest-rate environment.
To read the full byline, click here.