Sustainable Asset Accumulation and Dynamic Portfolio Decisions

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This book delves into sustainable wealth formation and dynamic decision-making, particularly in light of the global economic downturn from 2007-2009, which exposed many funds to risky returns and significant losses. In contrast, the stock market's recovery since 2010 has resulted in asset price booms and uneven wealth accumulation. The authors propose a comprehensive framework for asset management and wealth accumulation that addresses income risk and aims for sustainable, risk-free income in later life. They explore behavioral and institutional decision-making rules that align with these guidelines, emphasizing the importance of dynamic decision-making and portfolio rebalancing. By introducing dynamic programming as a method for integrating sustainable wealth accumulation with asset allocation, the book offers a thorough examination of asset accumulation and dynamic portfolio models, focusing on long-term sustainability. It addresses pressing concerns about economic sustainability using advanced quantitative techniques and models to present compelling, indisputable insights. This work is poised to serve as a key reference for both academic researchers and quantitatively skilled practitioners. It is recommended for both groups, with academics benefiting from rigorous discussions and practitioners gaining insights, even if some concepts may pose challenges.