There has been a growing trend of reassessing and moving towards a more updated, post-modern portfolio theory (MPT) risk management and portfolio construction process. Traditional MPT portfolio diversification and risk management strategies historically divided portfolio holdings amongst core asset classes such as U.S. stocks, foreign stocks, emerging markets, bonds, gold, commodities, and cash. When subsequent major market corrections ensued with less than stellar results for MPT - especially when needed most - that resulted in further diversification efforts with more portfolio parameters and, in some cases, adding a more dynamic, tactical overlay.
