The myth of Modern Portfolio Theory

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Jan 10, 2006 3:19 pm

Here's another link to keep the debate well stirred.


http://www.horsesmouth.com/hm.asp?ID=77151&Loc=&Flag =x&r=0%2E7315943


Thoughts gentlemen/women?

Jan 10, 2006 3:23 pm

I particularly appreciate the last point about Wall Street Firms not using Modern Portfolio Theory, Efficient Market Hypothosis or Capital Asset Pricing Model on their proprietary trading desks.


Soooooooo, our employers do not use it to manage their risk or make their $$$, buuuuutttt it's cool for our clients.  Hmmmmmmmmm.

Jan 10, 2006 3:31 pm

Another link to stimulate the discussion:


http://www.horsesmouth.com/hm.asp?ID=77151&Loc=&Flag =x&r=0%2E7315943


Jan 10, 2006 4:05 pm
dude:

Here's another link to keep the debate well stirred.


http://www.horsesmouth.com/hm.asp?ID=77151&Loc=&Flag =x&r=0%2E7315943


Thoughts gentlemen/women?



Is this info available somewhere where we don't have to register?

Jan 10, 2006 4:17 pm

MikeB, this is a great website to register with.  I think if you're w/ Morgan it's free?  Lots of good ideas from many different perspectives for business building, asset management, marketing etc....

Jan 10, 2006 4:37 pm
dude:

MikeB, this is a great website to register with.  I think if you're w/ Morgan it's free?  Lots of good ideas from many different perspectives for business building, asset management, marketing etc....


I may look into it, but I shy away from sites that won't let me in w/o detailed personal info. I really couldn't tell you why  

Jan 10, 2006 4:40 pm
dude:

I particularly appreciate the last point about Wall Street Firms not using Modern Portfolio Theory, Efficient Market Hypothosis or Capital Asset Pricing Model on their proprietary trading desks.


Soooooooo, our employers do not use it to manage their risk or make their $$$, buuuuutttt it's cool for our clients.  Hmmmmmmmmm.



I'd be very surprised if desks didn't use some model based on CAPM, otoh, being trading desks and not investment portfolios, I wouldn't be surprised if they ignored MPT. Also, the EMH isn't considered applicable in the ultra-short term world that trading desks work in.

Jan 10, 2006 4:41 pm

"Interesting that everyone has comments on MPT but no one offers a better documented system."


Ahem, 

Jan 10, 2006 4:46 pm

you forgot this part.........



IMPORTANT NOTICE
This material is provided exclusively for use by Horsesmouth members and is subject to Horsesmouth Terms & Conditions and applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished "as is" without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties express or implied are hereby excluded.

Jan 10, 2006 4:53 pm
badplaid:

you forgot this part.........



IMPORTANT NOTICE
This material is provided exclusively for use by Horsesmouth members and is subject to Horsesmouth Terms & Conditions and applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished "as is" without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties express or implied are hereby excluded.



Man, you're gonna do hard time. Right there in the same cell as mattress tag pullers 

Jan 10, 2006 5:21 pm

I may look into it, but I shy away from sites that won't let me in w/o detailed personal info. I really couldn't tell you why


LOL... and also because they want to SELL you something.


 

Jan 10, 2006 5:45 pm

Dude:

What does this Horsesmouth cost? If you use it, what have gained from it?



Thanks,

SKEE

Jan 10, 2006 5:54 pm

you should be able to get a 30 or 60 day free trial.


www.horsesmouth.com


Jan 10, 2006 6:06 pm

When I was at Morgan I had the subscription for 2 years w/o paying.  I don't know why I didn't have to pay.  Maybe because they feel sorry for the guys who have to work at that chop shop and want to give them some insights in how to be a real advisor; not some phoney who scams little old lady's out of their pension funds to slam into variable and equity indexed annuities like MikeB!


This is a great site for all aspects of our business.  It has a very large archive of articles from various experts in our industry.  I have found it useful for marketing ideas, investment education (this is where I first started to research "portable alpha" concepts) etc......


No I don't work for them.


I would say that it is by far the best advisor website I have come across.

Jan 10, 2006 6:13 pm
dude:

... how to be a real advisor; not some phoney who scams little old lady's out of their pension funds to slam into variable and equity indexed annuities like MikeB!  


Did I mention my fave new idea? An EIA with a 25 yr CDSC that pays me 25%. 

Jan 10, 2006 6:19 pm
mikebutler222:
dude:

... how to be a real advisor; not some phoney who scams little old lady's out of their pension funds to slam into variable and equity indexed annuities like MikeB!  


Did I mention my fave new idea? An EIA with a 25 yr CDSC that pays me 25%. 



Who is the carrier? Do you have a link to their website?

Jan 10, 2006 6:23 pm

Jan 10, 2006 6:26 pm

MikeB:


Is that the annual trail?  If so, could you get me the link to their website as well!

Jan 11, 2006 1:26 am
dude:

When I was at Morgan I had the subscription for 2 years w/o paying.  I don't know why I didn't have to pay.  Maybe because they feel sorry for the guys who have to work at that chop shop and want to give them some insights in how to be a real advisor; not some phoney who scams little old lady's out of their pension funds to slam into variable and equity indexed annuities like MikeB!


This is a great site for all aspects of our business.  It has a very large archive of articles from various experts in our industry.  I have found it useful for marketing ideas, investment education (this is where I first started to research "portable alpha" concepts) etc......


No I don't work for them.


I would say that it is by far the best advisor website I have come across.



We had it at PaineWebber until the market got ugly and they cut every cost to the bone(even got rid of paper shredding service for confidential papers!).  I found it to be a good site, loaded with ideas.  Almost too much info, really!

Jan 11, 2006 7:34 pm

These folks at Registered Rep are a little sensitive. They wiped out Dude's

postings of the articles from Horse's Mouth.