investments, we document an outperformance of 100 to 200 bps per year, even after we account for the leverage costs of 100 bps. We … believe our work will open up a new risk investing paradigm for those seeking long-term advantages. …

labor income, stochastic house prices, home renting and owning, stock investments, and portfolio constraints. We find that … households can significantly improve their welfare by optimally conditioning decisions on the predictors. For a modestly risk …