Markowitz’s Lost Message

Harry Markowitz is considered the father of modern finance by many, and his paper, Portfolio Selection, published in 1952, is the foundation of the Nobel Prize winning body of work known as Modern Portfolio Theory. It provides the mathematical foundation for strategic asset allocation, which is how professionals apply buy and hold investing to multiple…

Another Failure for Standard Deviation

Carl Noble, one of our excellent Pinnacle analysts, just passed around a chart from Ned Davis Research showing the short-term standard deviation of the change in price between the Financial SPDR, (ticker XLF), an exchange-traded fund that owns a diversified basket of financial stocks, and the rest of the market as measured by the S&P…