To gear… or not to gear?

The decision to use gearing or de-gear is an active investment choice and requires skill, experien...

The decision to use gearing or de-gear is an active investment choice and requires skill, experience and nerve The subject of gearing or leverage is a vexing one these days. Borrowing money is a dirty idea from Downing Street to the dinner table. Our banks and leading companies gorged themselves on cheap credit as did Joe Public, maxing out the credit cards and stretching the mortgage. The result, as we all now know, was the credit crunch and hitherto levels of worldwide indebtedness, especially in the West. So, it takes a brave person to advocate gearing up for the future, especially i...