Boston File: Personal Investing Policy
Presenter: Jarrod Wilcox
PERSONAL INVESTING POLICY
Good policies led to good long-term results. In investing, attention to stochastic growth models can provide a foundation for good investment policy. Maximizing expected log after-tax return of discretionary wealth each period is a robust way to set appropriate risk aversion tradeoffs so as to maximize median long-term wealth without intermediate-term shortfalls.