So for MPT practitioners (which are almost the entire industry) interest rates just are.
FORBES: Interest Rates For Dummies: Solving The Interest-Rate Puzzle
Second, MPT assumes all investors have access to the same information at the same time.
FORBES: Is Modern Portfolio Theory Out-of-Date?
But this is the math behind modern portfolio theory (MPT) developed in the 1950s by Harry Markowitz.
FORBES: Asset Allocation and the Efficient Frontier
This brings into question the very basis for MPT and its ability to forecast an efficient frontier.
Another assumption of MPT is that investors accurately understand what returns are possible.
In a 1952 paper and 1959 book, Portfolio Selection, future Nobel laureate Harry Markowitz expounded MPT for the investment world.
The flipside to MPT critics is that strategic asset allocation has indeed largely withstood more than five decades and numerous market cycles.
FORBES: How To Construct The Perfect Portfolio
In its short history, MPT has come under question from various directions.
To look at the effects of blending these two investments together, MPT also entails knowing how much they move in sync with one another.
For one, MPT assumes that investors are always rational and risk-averse.
Spear uses a "consensus" system that follows the portfolios of some of the top-performing letters including the Coolcat Explosive Small Cap Growth Stock Report, the Prudent Speculator and Louis Navellier 's MPT Review.
FORBES: Rambus Man Has His Day
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