Research & News
The article reviews how portfolios based on dedicated portfolio theory were made for volatile times like these and tend to hold up much better than portfolios based on modern portfolio theory. The recent market turmoil in both the stock and the bond market put clients’ financial plans under pressure, however we show how the Asset Dedication approach helps reduce some of the risks in ways that MPT and other approaches do not.
The Investment & Wealth Institute awarded Asset Dedication’s Stephen J. Huxley, Ph.D. and Brent Burns, MBA, the 2019 Journal Research Award for their paper “Safety Zones, Danger Zones, and the Critical Path: Visualizing U.S. Asset Class Returns Based on Time Horizons, Size, and Style,” published in the Retirement Management Journal, Vol. 7, No. 1 (2018). The paper included an analysis not only of long-term return patterns, it also outlined the unique dedicated portfolio pioneered by Asset Dedication for personal finance as outlined in our book. The award was given at the IWI conference in Las Vegas, May 5-7, 2019. Click here to read the paper. >>
A recent article in ThinkAdvisor chronicles a discussion with Daniel Kahneman (Nobel Memorial Prize in Economic Science, 2002) at the MorningStar Investment Conference in Chicago (June 11-13, 2018) about the need to find strategies that will minimize investors’ regrets. He theorized, based on Prospect Theory, that investors would be more comfortable with portfolios that consisted of two distinct parts: one for stable investments, the other for riskier investments. Probably without realizing it, Dr. Kahneman was advocating for dedicated portfolio theory as applied to personal finance. Click here to read our reflection >>
In this article, published in the NAPFA ADVISOR magazine (April, 2018), Asset Dedication’s Stephen J. Huxley, Ph.D. and Brent Burns discuss how dedicated portfolio theory challenges modern portfolio theory. Daniel Kahneman, Nobel Memorial Prize in Economic Science, 2002, essentially advocated for the dedicated approach to personal investing in his discussion at the 2018 MorningStar Conference in Chicago. This is the strategy pioneered by Asset Dedication for personal finance as outlined in our book. Click here to read the article>>.
In this white paper, Asset Dedication’s Stephen J. Huxley, PHD, Brent Burns and Jeremy Fletcher present a new concept in financial analysis based on the long term behavior of equities. Click here to read the white paper >>>