Why not buy stocks on margin? After all, you can deduct the margin interest, so your cost of capital is only 3-4%. Of course margin interest is variable, but otherwise investing and having a mortgage is no different than buying on margin (something most sensible investors don't do). <P>There is an enormous difference between a mortgage and buying stocks on margin. If the house value declines the bank can not call the mortgage. If the stock value declines you get a margin call & either have to sell out at a ruinous loss, or come up with more money on a day's notice.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. M