The Death of Modern Investment Theory

The Death of Modern Investment Theory

Regarding Harry Markowitz’s Modern Portfolio Theory (MPT), at what point do we throw in the towel, give up the ghost, or even call it a day? 

Markowitz, in his quest to deliver an understandable doctorate thesis, used lines, dots, and all sorts of machinations in order to prove that investors were rational and that financial markets were efficient. 

He dealt with diversification while theorizing that a collective group of assets had inherently less risk compared to owning the very same assets individually. 

In fact, most of the asset allocation models...