Introduction
Modern Portfolio Theory
Benefits
Strategic Portfolio Analysis
Investments and Asset Allocation
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"More efficient investment portfolios can be created by diversifying among asset categories with low to negative correlations."

-1990 Nobel Prize winning economist Dr. Harry M. Markowitz
(Father of Modern Portfolio Theory)

Modern Portfolio Theory

  •   Investors want the highest returns with the least risk
  •   Diversification is essential to managing risk
  •   Higher returns are possible with better asset allocation

Asset Allocation with Strategic Investments*


assets

Source: "The Potential Role of Managed Commodity Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds," Annual Conference of Financial Analysts Federation, May 1983.


* Dr. John Lintner of Harvard University, wrote that "the combined portfolios of stocks (or stocks and bonds) after including judicious investments ... in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone."

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