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January 4, 2019 | Have You Borrowed Money to Buy Stocks and Other Securities?

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Some recent mail from blog readers has reminded me of an important topic always worth repeating.

Many financial sales firms recommend that their customers/clients borrow money either against their real estate (HELCOs or mortgages) or against their security portfolios (margin debt) as a way of increasing the firm’s fees.

This is predictably devastating for their customers once down cycles arrive and asset prices start falling while the debt does not.  Such self-serving ‘advice’ should be illegal.

If you or someone you know has borrowed funds to buy securities, it’s not too late to get a second opinion.

See my post here:  Investors Group tightens the leverage noose on the gullible as well as Financial trainwreck assured:  borrowing to ‘invest’ at record highs.

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January 4th, 2019

Posted In: Juggling Dynamite

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