While planning for a CMA (Capital Market Assumptions) at the close of the year—and in the wake of an unexpected U.S. election result—it’s tempting to adopt a short-term perspective, focusing on the uncertainties and anxieties generated by President-elect Trump’s policies and their potentially disruptive impact on the economy and the market.

Picking the “right” stock is akin to betting on a game; not only must one pick the right team (beta), but also by how much (alpha).

While the 60/40 approach may rapidly become obsolete, the debate over its value has bolstered the teaching of MPT and stressed the benefit of extensive diversification as the most efficient portfolio construction methodology.