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6.29.2010

With Rates This Low, Should You be Borrowing to Invest?

With Rates This Low, Should You be Borrowing to Invest?

The thought of leveraging your line of credit to purchase stock is an interesting idea. Could BP be an option if you're speculating on a 2 year trend? What about Potash and the global need for increased food production?

This strategy requires a lot of discipline and a solid understanding of your accounts payable. Being over leveraged could work against you if you're in a life change position such as wanting to buy a new home or even if you're expected to start paying for secondary school expenses.

Do your homework and don't just start blindly investing your 'borrowed' money.