iSectors Blog: Post-MPT


Winning Investment Strategies Need Offense and Defense

By Scott Jones @Scott_iSectors In the sports world, entire teams or individuals spend a portion of the time playing offense and another portion of the time playing defense. Good defense keeps bad things from...

iSectors®, LLC Post-MPT Allocation: Improving the Application of Modern Portfolio Theory

The research on Modern Portfolio Theory (MPT) was published more than 55 years ago.  Nonetheless, it would be difficult to overstate the influence of MPT’s core principles on the manner in which investments are...

4th Quarter 2015 Market Summary Commentary

Although US stocks rebounded in 2015’s final quarter, most other asset classes were flat or down.  As a whole, 2015 was unusual in that there were not major asset classes with results greater than...

Barron’s Laughable Cover Story on the Stock Market Outlook for 2016

Barron’s presented 10 “prominent” strategists’ views on the economy and 2016 market this last weekend (12/12/15). I laughed as I read the article this past weekend. My takeaways are as follows: Every one of them...

3rd Quarter 2015 Summary Commentary

Summary Overview Standard & Poor’s 500 was down 6.44% during the quarter and down 0.61% over the past 12 months. MSCI AC World ex US (international stocks) underperformed US stocks in the quarter by...

Post-MPT 4th Quarter Update

UNSAFE AT CURRENT SPEEDS The quantitative model supporting the Post-MPT strategies has made major changes in the third quarter. At the end of June, the iSectors® Post-MPT Growth Allocation was leveraged, with major overweights...

The Case for Post-MPT as a Liquid Alternative

It is a little known fact that the iSectors Post-MPT Growth Allocation actually started out as a hedge fund way back in 2005. Very shortly thereafter, it was decided that ETFs would be a much...

Interest rate hike in September or December?

Although the timing is variable, we agree with the Fed Funds futures market that the first Fed rate rise will take place in December.  Given the global economic slowdown, the Fed does not want...

iSectors Post-MPT Growth Update – September 2015

The September rebalancing of the iSectors Post-MPT Growth Allocation resulted in a major downward shift in the portfolios risk.  The amount of leverage dropped from 29% in August to 2%. It has been over two...

Update: Post-MPT Growth Allocation 10 year data results through July 2015

Among the many ways to graphically review performance and risk numbers, presenting this information in triangle forms can give unique perspectives.  In November of last year, we wrote on Post-MPT Growth Allocation data through...