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Am wondering whether I should borrow against the equity in my house to invest in the stock market in this volatile time? Should I go with mutual funds when only 25% have outperformed the index or direct stocks?
I don't have the time to research companies so are mutual funds still the way to go?
would appreciate any feedback.
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No. of Recommendations: 0
Am wondering whether I should borrow against the equity in my house to invest in the stock market in this volatile time? Should I go with mutual funds when only 25% have outperformed the index or direct stocks?
I don't have the time to research companies so are mutual funds still the way to go?


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I am still shocked that people will consider borrowing money to invest.

The best advice I can give is to read carefully the 13 Steps to Investing.

Maybe you should consider an index fund and have done with it.
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Do not borrow to invest, at this volatile time or at any other volatile time.

Rather, cut expenses, pay down debts, and start regular investing ... in an index fund at first, until you do have time to research individual companies.

I'd forget mutual funds with the exception of a no-load index fund like the Vanguard 500.

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"Am wondering whether I should borrow against the equity in my house to invest in the stock market in this volatile time? "

This is an extremely risky method of investing at any time - volatile, nonvolatile, overvalued or undervalued.

While I woould never borrow to invest, we recently (three yrs ago) refinanced our home at 6 7/8 interest. We began making larger payments in order to pay off the loan early. Stopped that a year ago and we are now investing in an index fund what would have ben paid against the mortgage. We have a 7 year time horizon. At this point we are very much ahead of our goal to pay the mortgage of early.

BGP



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