Long-term investors rebalance their portfolios given their views on the investment landscape. Portfolio tilting is often implemented using investors' views on point estimates of asset expected returns which are notoriously difficult to estimate and lead to unstable portfolio weights. We avoid...

This technical note details an equilibrium asset pricing model for stocks and bonds under economic growth and inflation uncertainties using the Epstein and Zin preferences. Specifically, the results show that both equity and bond risk premiums are priced by growth and inflation uncertainties....