Book Review: 'The Intelligent Portfolio' by Christopher Jones [View article]
Systemseeker:
I don't think you have read my stuff or looked carefully at QPP. QPP-generated portfolios strongly discount recent historical performance. Try and find somewhere in my articles in which I have a heavy allocation to asset classes (including EEM) that have substantially out-performed recently. Quite to the contrary--QPP projects that EEM is due to substantial reversion to the mean.
QPP uses historical data as input but the entire point of QPP is that it generates forward-looking results that do not simply lean towards the sectors that have out-performed in the historical period...
When you say that any weighting away from market cap weighting is a sector bet, this means that you believe in perfectly efficient markets...there is abundant evidence that market cap weighting is not, in fact, optimal.
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Systemseeker:
Jun 11 15:18 pm
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All Comments by Geoff Considine »Book Review: 'The Intelligent Portfolio' by Christopher Jones [View article]
I don't think you have read my stuff or looked carefully at QPP. QPP-generated portfolios strongly discount recent historical performance. Try and find somewhere in my articles in which I have a heavy allocation to asset classes (including EEM) that have substantially out-performed recently. Quite to the contrary--QPP projects that EEM is due to substantial reversion to the mean.
QPP uses historical data as input but the entire point of QPP is that it generates forward-looking results that do not simply lean towards the sectors that have out-performed in the historical period...
When you say that any weighting away from market cap weighting is a sector bet, this means that you believe in perfectly efficient markets...there is abundant evidence that market cap weighting is not, in fact, optimal.
Regards,
Geoff