Borrowing money to be used for paper investment is simply a gamble.
Investing in the stock market or mutual fund has risk associated to it – past performance does not and cannot be a guarantee of future returns. What more if you borrow and use it to invest/trade? What if you lose your job next month?
There are new investors who feel great these days because their portfolios are showing fantastic numbers in less than a year of investing. Ironically, some of these people have actually borrowed money to invest in stocks and mutual funds.
How did I know that they borrowed? Because they’re the ones who asked me that question. Continue reading Should You Borrow Money To Invest in Stocks?