In finance, liquidity builds resilience, and debt erodes it.

Going into high-risk investments with high debt is an up-risking strategy with low upside and high downside.

Going into high-risk investments with high liquidity is a de-risking strategy with huge upside and low downside.

Liquidity should dictate risk appetite, but in reality, it is inversed: those with low liquidity buy lottery tickets, and those with high liquidity buy bonds.

Liquidity, not age, should be the leading criterion for risk appetite.

– Osasu Oviawe