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>>If we assume that stock prices will follow profits, a major recession, where companies sell and earn less, will likely cause stock prices to descend. IBM, once
the rock solid stock, dropped from 175 to 42. Would you have wanted to have your house money in that? How about Dell? AT&T, the mom and pop stock?
Down 65% this year. Who knows when it will recover. Lucent, same. <<

VERY good point.

>>You can get 7.5% on a CD, guaranteed. Are you willing to gamble your house that you can pick winners in the stock market? <<

You'd probably come out even better putting the money in a "tax exempt" Money Market account. This way, almost a third of your interest will not be eaten up by taxes - depending on your tax bracket. Obviously, it will not pay as high a yield as a taxable account, but depending on your tax bracket, you could possible come out with more of your interest in YOUR pocket than paid in taxes. Just a thought.
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