Tag - Michael Keppler

Advice to the Advisors

Sheaff Brock Institutional | Market Movement | Risk and Volatility

Today’s Advisors and Investors Do Not Equate Risk and Volatility

By the 1990s, forty years after Harry Markowitz had introduced his Modern Portfolio Theory, the concept of risk avoidance had gained enormous influence in the world of portfolio management. Computer programs had come into being plotting different investment mixes into an “efficient frontier,” causing many financial professionals to equate risk and volatility. Michael Keppler, then First VP of Commerzbank Capital Markets in New York, viewed this development with concern, questioning Modern Portfolio Theory’s use of volatility as a proxy for [...]