When to use Gearing in your investment strategy

Today we're going to explore a strategy element that has application to both the stock and property pathways. We're talking here about gearing. Gearing means borrowing to invest. Gearing is a way to increase your risk, and we know that risk and reward are inextricably linked. We also know that there's no such thing as a free lunch, and higher risk, whilst helpful in providing the potential for higher returns, also comes with  the potential for greater loss. So in this piece we will be looking at how you might manage the risk associated with gearing too.

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