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Modern portfolio theory has it wrong

Discussion in 'Education, Tutorials & Courses' started by ForexLive, Sep 15, 2016.

  1. ForexLive

    ForexLive Forum Member

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    Why you should be cautious of your financial advisor I come to write this piece because an approaching retirement friend has just sold his London house and has a relatively significant amount of money to invest. As he trawls around wealth managers I have offered him some basic financial advice but the thing that I find most startling is that all these advisors (almost without exception) are still telling him to hold around 30-50% of his wealth in bonds. To me this highlights the dangerous dominance of (the flawed) Modern Portfolio Theory (MPT).

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