The Problem with MPT - takes 100 years to work out - the risk is different at different times if you enter or exit at an inopportune time you do not reap the benefits need to adjust for personal time frames

The reverse of BLACKJACK

Lessons of the Endowment Model, the 4% Rule and Subprime-lending

How the Citi model and Total Merrill set the retail industry back 30 years.

The model was ass backwards, it was not build to evolve. It was build to get big to survive not better. In the end  all they had was a sales machine with more sales talent than investment talent and were hoodwinked by the smart guys.

The Goldman Model was build to evolve that's why the keep making money and the  old Citi and Merrill became extinct.Go to http://www.fora.tv/ and listen to Niall Fergerson, he'll tell you how.

In the supermarket model the investment process was packaged and sold as a commodity in three sizes, small(conservative), medium( moderate ) and large (aggressive). This helped justify the existence of retail brokers and pension consultants, who guided clients through elaborate allocations between different styles. It did not encourage skillful investing.

Niall Ferguson in a lecture on FORA.TV calls it arrested evolution.

and this phase in finance as the Great Repression. Bailing out the supermarkets kept them from evolving are puts this off for another decade Citi has moved on and is now no longer the new citi is bank of america.

MPT led to market crash

Only people who use MPT are those that don"t manage money. That are not responsible for performance other than to tell you that the market sucks not thier strategy. Same concept soros talks about in mtg origination when you separate the agent from the principal and shift the risk to someone else you create a problem.

WANTED: New Model for Markets

Critics of the conventional wisdom say all these efforts are a waste of time. Jeremy Grantham of Granthan Mayo Otterloo, A Boston-based fund Manager, and a long time critic of the efficient markets hypothesis, says academics will "patch theories until they finally collapse under the weight of all the patches".



The Investors dilemma...

While academics look for deeper models of markets that work, investors are left with a toolkit they have had since business school that suddenly seems not to work. It is unsettling. "I look at this process as being, in a sense, halfway done, says Mr Putnam of Grail. We've learnt a great deal but we haven't learnt how to integrate and synthesise that into a way to go forward. So the process, the paralysis, the trauma, has really taken hold right at the moment."

UNITY OF PURPOSE -

Lessons of the Endowment Model - Even the smart guys make mistakes

Taken Institutional Investor Magazine, 04 November 2009

"Beyond then hallowed halls of Harvars University's Cambridge, Massachesetts, campus, accross the Charles River in allston.

BUILDING A MODULAR PORTFOLUIO

1- Retirement Income
2- Capital Growth
3-Avoiding Investment paralysis
4-a notion of the future