Saturday, April 11, 2009
WHO SAY WE CANNOT BORROW MONEY TO INVEST IN STOCKS AND SHARES
It is a common believe that we should not borrow money (margin) to buy stocks and shares. Well, I think they are death wrong. Currently, Malaysia bankers are offering the market 5% or less interest rate for margin account of investing in stocks and shares. If we were to buy stocks that can generate 5% or more dividends with the companies making profit year in year out. There is no reason why we should not buy those stocks. The 5% or more dividends are well enough to cover the cost of interest rate and we left with capital appreciation. Why not? Using bankers' money to make money. This is what the riches are doing anyway.
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True... BUT only for those who are already trading for a living (i.e ARE making consistent profit) from stocks/shares for at least five years and have seen the ups/downs and have a proven winning system/strategy. joe
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