If tax-loss harvesting cushions downside, shouldn't investors take more risk?
Partners Capital (2019) argues more equity-like risk is appropriate for taxable investors
Weekly reading from taxable wealth
Parti Pris: Rules-Based Rebalancing vs. Risk-Based Optimization
Vise: 15 years ago "Enterprise RIA" wasn't even a term
Morningstar: Net Worth Optimization
Most investors use pre-tax returns and volatility to size risk
But taxes soften gains and losses.
Partners Capital (2019) argues taxable investors should take more risk.
I drew the picture above based on the assumptions in their paper.
