Seventy-one years ago, Harry Markowitz revolutionized how individuals and institutions invest by drawing attention away from individual security selection and focusing it on portfolio construction more broadly. To Markowitz, which stock a portfolio held mattered far less than the mix of stocks, bonds and other broad asset classes.
Moreover, long-term benefits could be gained by holding a mix of assets that performed differently under different economic conditions. With the future inherently uncertain, investors should be…
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