Tangible Mental Accounts

2- Twitter Fund
+ Turbulence
Complex Adaptive Portfolio Management
Safety Net - BE
Style Rotation
Macro Matters

The Industry was built on Modern Finance - And MF os Flawed in it's Thinking

Stationarity

How you've been had - The Misconceprtions of Modern Finance and the implications on your retirement

Mistakes and Limitations of Modern Portfolio Theory

1- Serial correlation - Assuming that the joint distribution of Stocks and bonds is just like flipping a coin.
This is WRONG

2- ALL Modern Finance Assumes Stationary..This is Wrong - Think of pricing houses and stocks at any point in time....Decisions are made on the premise that this condition will last forever..that the market will price it self to this condition. Think about the yield curve and pricing off treasuries. if the 2 yr is always 5% and corporates 200bp above then they will always yield 7%. What do you re balance to? or price off of as conditions change.

3- The crucial mistake in portfolio theory that Samuelson pointed out was that you don't live in Tahiti. There is Nothing to Re balance to>

4- MPT assumes there are no structural Changes - That's Wrong

5- Efficient market theory assumed people were rational. That's Wrong

Some things don't Change

it's still about cash flow, always was always will be.

Our Model is based on evolution and the forces of.

The Purpose of the MATRIX

To offer a hedge-fund-like approach without the hedge-fund-like drawbacks. The MW/AM is an alternative option without the baggage of lack of liquidity and transparency, high fees and tax insensitivity