It wasn't the plan that was flawed, it was the execution.

Now two years out from the steepest market decline since the Great Depression, the consensus among many is that modern portfolio theory-so harshly criticized during the depths of the financial crisis-is still the most valid approach to portfolio design. The problem, and the criticism, stemmed from the fact that too many investors and their advisors failed to include a sufficient amount of truly negatively or neutrally correlated asset classes into the mix. In other words, they didn't implement modern portfolio theory correctly.

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