The Great Reset, Part Two | Thoughts from the Frontline Investment Newsletter | Mauldin Economics
... use a variation of Modern Portfolio Theory. MPT argues that you should diversify among noncorrelated asset classes to reduce overall portfolio volatility. That strategy is wonderful when asset classes are truly noncorrelated – but we found out in 2009 that noncorrelation isn’t a reality anymore. Going forward, I think it will be more useful to diversify among noncorrelated trading strategies...MPT 2.0...
...Harry patiently explained yet again that the key to MPT is in the words diversification and noncorrelation. The asset classes are just tools. They are interchangeable .... diversifying trading strategies is just another variant use of MPT....
...the answer lies in diversifying among noncorrelated trading strategies with managers who have a mandate to invest in any asset class their models tell them to....
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