Seeking Alpha

1999 all over? 3 Reasons To Tap Home Equity To Buy Stock

  • "Buying stocks with the proceeds from a home equity loan diversifies the portfolio," writes Jonathan Yates, in an article appearing on MSN's Money website.
  • The low rates on mortgages allow homeowners an arbitrage play, borrowing at say, 3.25% to buy the stock of REITs with higher yields. What could possibly go wrong?
  • Broad market ETFs: PRF, VV, SCHX, NY, JKD, FEX, EQL, EEH, SPXH, TRSK, FWDD, PXLC, ERW, ALTL, SYE
Comments (11)
  • ppk721
    , contributor
    Comments (43) | Send Message
     
    another jack-ass with his hand out
    18 Mar, 03:45 PM Reply Like
  • bbro
    , contributor
    Comments (9621) | Send Message
     
    I agree incurring additional debt to your home to buy stocks is foolish...
    18 Mar, 03:46 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1020) | Send Message
     
    Lets hope people have smartened up and will not go for this.
    18 Mar, 03:47 PM Reply Like
  • MEKhoury
    , contributor
    Comments (243) | Send Message
     
    Tea just came out my nose
    18 Mar, 03:47 PM Reply Like
  • rambler1
    , contributor
    Comments (447) | Send Message
     
    The guy must be 25 years old, and never read a history book.
    18 Mar, 03:52 PM Reply Like
  • Eudaimonia
    , contributor
    Comments (553) | Send Message
     
    sounds bullet proof.
    18 Mar, 04:11 PM Reply Like
  • kgerickson
    , contributor
    Comments (194) | Send Message
     
    Here we go again. Comparing apples and oranges with different risk/return profiles and pretending they are the same.
    18 Mar, 04:16 PM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    When the Wall Street Journal runs another article advising that people put their emergency funds into stocks (because they rarely go down)... that's when I go to full cash again ;-)
    18 Mar, 04:21 PM Reply Like
  • cabernetguy
    , contributor
    Comments (6) | Send Message
     
    A true sign of a top, convince the newbie to go all in.
    18 Mar, 05:27 PM Reply Like
  • melted1
    , contributor
    Comments (2) | Send Message
     
    Looks like they killed the link, but here it is for those who missed it:

     

    http://bit.ly/1p8MDqW
    18 Mar, 05:27 PM Reply Like
  • Long Term Value
    , contributor
    Comments (190) | Send Message
     
    Pardon me while I totally freak out.

     

    So bad!
    19 Mar, 02:01 AM Reply Like
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