Lifecycle Investing Across Time
These notes are primarily based on the ideas and learnings from "Lifecycle Investing: A New, Safe, And Audacious Way To Improve Performance Of Retirement Portfolios", 1st Edition, by Ian Ayres and Barry Nalebuff in 2010. The description of the book mentions: "Diversification provides a well-known way of getting a free lunch, where, by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). There is an additional form of diversification which can be considered for an investor to diversify their portfolio over time. By using leveraging when young, investors can substantially reduce overall risk while improving their returns". There is clear evidence to the proposed strategy, although there are also possible concerns around real implementation, and it is as spectacular as learning about the Efficient Market Hypothesis.
For further information, the authors published a paper as "Diversification Across Time". ...