ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
January 4, 2019 | Have You Borrowed Money to Buy Stocks and Other Securities?
Danielle Park
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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Danielle Park January 4th, 2019
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