FYI: Canadian baby boomer couple would have amassed an additional $360,000 over 40 years by investing in an all-bond portfolio rather than in one based on Modern Portfolio Theory and the Efficient Market Hypothesis, a new study shows.
Their all-bond portfolio would have performed even better than an all-equity one, outperforming by more than $700,000.
The study, by Jim Fischer of the Mount Royal University in Canada, was the subject of a breakout session at the FPA’s annual conference today in Minneapolis. Its purpose was to evaluate how well Modern Portfolio Theory (MPT) and the Efficient Markets Hypothesis (EMH) served Canada’s baby boom generation.
Regards,
Ted
Study:
https://www.researchgate.net/publication/336312974_MODERN_PORTFOLIO_THEORY_AND_THE_EFFICIENT_MARKETS_HYPOTHESIS_HOW_WELL_DID_THEY_SERVE_CANADA'S_BABY-BOOM_GENERATION
