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?

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Comments (11)
  • ppk721
    , contributor
    Comments (46) | Send Message
     
    another jack-ass with his hand out
    18 Mar 2014, 03:45 PM Reply Like
  • bbro
    , contributor
    Comments (11234) | Send Message
     
    I agree incurring additional debt to your home to buy stocks is foolish...
    18 Mar 2014, 03:46 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1597) | Send Message
     
    Lets hope people have smartened up and will not go for this.
    18 Mar 2014, 03:47 PM Reply Like
  • MEKhoury
    , contributor
    Comments (407) | Send Message
     
    Tea just came out my nose
    18 Mar 2014, 03:47 PM Reply Like
  • rambler1
    , contributor
    Comments (1048) | Send Message
     
    The guy must be 25 years old, and never read a history book.
    18 Mar 2014, 03:52 PM Reply Like
  • Eudaimonia
    , contributor
    Comments (952) | Send Message
     
    sounds bullet proof.
    18 Mar 2014, 04:11 PM Reply Like
  • kgerickson
    , contributor
    Comments (477) | Send Message
     
    Here we go again. Comparing apples and oranges with different risk/return profiles and pretending they are the same.
    18 Mar 2014, 04:16 PM Reply Like
  • Tricky
    , contributor
    Comments (2519) | 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 2014, 04:21 PM Reply Like
  • cabernetguy
    , contributor
    Comments (7) | Send Message
     
    A true sign of a top, convince the newbie to go all in.
    18 Mar 2014, 05:27 PM Reply Like
  • melted1
    , contributor
    Comments (5) | Send Message
     
    Looks like they killed the link, but here it is for those who missed it:

     

    http://bit.ly/1p8MDqW
    18 Mar 2014, 05:27 PM Reply Like
  • Long Term Value
    , contributor
    Comments (194) | Send Message
     
    Pardon me while I totally freak out.

     

    So bad!
    19 Mar 2014, 02:01 AM Reply Like
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