Most fund managers learn modern portfolio theories from Ivy League universities. The theories are faulted. However, some gained Nobel prizes using faulted theories - a bad reflection of today's silly Nobel prize committee. They do not work in real life and I and many others have proved them wrong many times in real life.
The so-called modern portfolio theories are most likely based on bad testing parameters/assumptions. Unfortunately they're still supported by the ivory towers. All the students taking these courses should ask for refunds from these universities. Most likely these professors are driving an old Toyota and have never made good money in the market besides in 'teaching', selling 'books' and/or running hedge funds to cheat your money.
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(c) TonyP4 2012. Written in 5/10/12. Last updated in 5/10/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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John DC said:
ReplyDeleteThe FATHER of MPT, Harry Markowitz himself was once quoted that he never intended his work to be used for ACTUAL investing!
Also, he was quoted in the LA Times back in 2009 *I think* as saying he does not use MPT for HIS investing. Hmmmm...
Look at the result of the funds managed by the students of MPT. Most cannot beat SPY. I rest my case.
ReplyDeleteIf the market is rational, we would not have poor folks.
15 May, 08:49 AMReply! Report AbuseLike0