Risk profiling, asset allocation and stochastic modeling tools have come a long way since the turn of the millennium when they first appeared.
However it is only recently that I think they can be said to have come of age. I draw this conclusion not from the fact that statistics show that over half of independent advisers now use them, but rather because of two recent events: an article in the technical press, and a personal experience. The first was a technical article I read recently on the subject of investment advice. Whilst I disagree with some of the conclusions (for example, asset allocations are not just derived from historical but also market consistent data and it is possible to choose sensible – unconditional - periods...
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