Thanks for your comment Tom.

As we will discuss in an upcoming post, the three MPT pillars (efficient frontier, CAPM, and EHF) have all failed empirically (starting in the late 70's and early 80's) and so MPT is a discredited paradigm.

Sadly, my former academic world continues to teach this model, as does the CFA, simply because "if we did not teach MPT what would we teach?"

The next paradigm will emerge from Behavioral Finance, which is sweeping across the investment industry. Investor Behavior will be the lens through which advisors and analysts will view the world abound them.

A new set of behaviorally based, objective tools will emerge for analyzing investment decisions.