Do you leverage or deleverage?
There are several thoughts that come to mind when we hear in mind the word,”leverage”.
In my mind, leverage means ‘borrow’ what is currently not available but perhaps could be available at a future point in time and this makes the concept future oriented. When i hear the word leverage, i think about sharing. In the financial world, I would be thinking ‘taking more debt’.
The opposite of the word leverage maybe the word ‘de-leverage’.
Word/Opposite
Leverage/de-leverage
borrow/return the borrow
increase debt/decrease debt
increase sharing/decrease sharing
When the market is going up, then leveraging the resources may be a good play as the returns may be higher for the leverage. However; if the market is going down, then leveraging may not be a good idea and as our wisdom and experience may indicate, if what we are doing is not true then the probability of opposite of what we are doing must be high, and hence de-leveraging may be a good play.
I think the concept applies to multiple topics like money, thoughts, sense,behavior, emotions, ideas etc
So, do you prefer to leverage or de-leverage ?
I am interested in knowing your opinion.
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