Nowadays, some investors choose to buy stocks by taking out a loan or credit cards, is buying stocks on credit a bad idea?
With a good mix, a stock investment brings at least 6% in value over the long term. Again and again, stock exchanges provide opportunities that require immediate access, such as in the run-up to corporate takeovers.
Jumps of 20% or more are hard to miss. Even more exciting are investment products with a lever in which the profits multiply accordingly.
Borrow and buy stocks?
However, equities cost money and leverage products require a margin to the provider. So what if your own cash reserves are tight or otherwise fixed? Of course you could borrow and buy stocks. After all, the interest rates are so low that they fade completely before the development of some stock market racers.
For example, over a five-year period, the price of Amazon rose over 700% and Facebook 500%. Other examples, 5G is extremely hot right now, AAOI rises over 1000% since its IPO in 2013. Acacia even managed almost 600% in 5 months alone. This turned $2,000 into $12,000 – in just five months. Taking out a loan and buying stock of it seems only logical in view of these proportions. ...CONTINUE READING