As the CIO of Sungarden Fund Mgmt writes:  “MPT works well in strong markets and over periods of declining interest rates.  This decade will likely see the turning point of that story, and I suspect that many financial planning firms will fight that trend, as they did back in 2000 and 2007 when long-held, oversimplified belief systems went from “easy” ways to keep clients happy and get paid well, to a renewed focus on true investor objectives.Traditional asset allocation is dead.   Advisors that adapt to this new climate will survive–those that don’t will go the way of the dinosaur.

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