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Modern Portfolio Theory not followed by its founder

In the article "The Big Bang" in Financial Planning Magazine talks about Harry Markowitz, the father of modern portfolio theory. As the father of MPT/asset allocation, he usually has a 60/40 split of stocks/bonds. The interesting part is that the article states that he is a "tactical investor when he wants to be. "

"In June 2007, just before two of Bear Stearns' subprime mortgage hedge funds blew up, Markowitz sold all his equity holdings outside of the TIAA-CREF account-iShares MSCI Emerging Markets (EEM), iShares MSCI EAFE (EFA), plus small- and mid-cap Select Sector SPDRs-and put the money into cash. He made the move after conferring with a hedge fund client who was shorting Bear Stearns.”

The guy who came up with the idea for passive asset allocation does not follow it!!! When he sees risk he will and has made tactical moves away from those asset classes. What does that say for the theory when the founder doesn't even follow it?

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