Utility theory is the pinnacle of anecdotal dogma.

I find it tragicomical when someone claims that my statements about investment risk being characterized as losses are anecdotal compared to utility theory arguments.

Let’s be perfectly clear: the empirical support for utility theory is non-existent.

A method does not automatically become scientific just because it is wrapped in mathematical formalities.

If the foundation fundamentally disagrees with reality, you just end up with something that is exactly wrong.

It’s the same case with mean-variance, which some people try to justify with utility theory.

The two theories are “consistently wrong”, but that’s obviously not a desirable feature :-)