No stable equilibrium - Portfolio choice

[jpfeifer]

Most often it’s a timing problem, but in your case the following seems relevant:

Something wrong with the steady state

Yes, there is explosiveness, i.e. one of the stocks (typically capital or bonds) do not have a finite solution. Sometimes that is just a matter of parameters like the elasticities in fiscal rules. At other times, there is a fundamental mistake in the stabilizing mechanisms.