Our Recent Blogs

GDP Growth and Stock Market Returns NOT Correlated. Wait . . What?

6.16.14

It’s very dangerous to make assumptions and one of the biggest assumptions many investors and financial advisors make is that economic growth leads to stock market returns. A recent article in Forbes magazine highlighted a couple of articles about this … Continue reading

What is Drawdown and why is it Critical to Control It?

5.16.14

Drawdown is an important risk measure for portfolio management. Without explicit loss control mechanisms, traditional passive asset allocation portfolios can experience large drawdowns that take a long time to recover from. Source: Newfound Financial Innovators The “drawdown message”: 1)     Even … Continue reading

Markowitz and MPT Misunderstood

4.17.14

Modern Portfolio Theory (MPT), as developed my Harry Markowitz in the 1950’s, is supposed to be a theory of tradeoffs between investment risk and potential return. MPT has served as the supposed basis for many financial advisors to develop their … Continue reading