Recently deceased scientist, stephen hawking, said to a graduating class, “the next century [21 st] will be the century of complexity” and encouraged them to embrace it. If you have a money manager in charge of your assets, then there is a good chance he or she may be using modern portfolio theory (mpt) to manage the portfolio in which your assets are domiciled.
Post-modern portfolio theory is built on a deeper relationship between client and advisor, where the conversation focuses on the client experience as. Isectors® post-mpt allocation strategies isectors post-mpt allocationsmaintain optimal portfolio allocations by rebalancing portfolios regularly as the investment environment changes isectors is an enhanced approach to traditional modern portfolio theory (mpt) that catapults mpt to a new level of excellence isectors impressive.
Post-modern portfolio theory extends mpt by adopting non-normally distributed, asymmetric measures of risk this helps with some of these problems, but not others.
A portfolio optimization methodology that uses the downside risk of returns instead of the mean variance of investment returns used by modern portfolio theory the difference lies in each theory's definition of risk, and how that risk influences expected returns.
Factor investing: a post-modern portfolio theory with apologies to harry markowitz, why it's wise to tweak mpt by using factors offering positive return premiums over time. History in 1959, harry markowitz, the father of modern portfolio theory, published portfolio selection, in which he proposed that investors expect to be.