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Comment by xiphias2

4 years ago

For people who expect to have stable earnings with the current interest rates being below the real inflation the Kelly optimal strategy is to be in debt use it to finance investments (of course this works only if the future earnings are really stable).

As a business example startups are starting to apply for loans against their future subscription earnings to reinvest in their companies. Debt against your salary is the personal version of the same strategy.