One paragraph from a current book I'm reading sums up my feelings on investing:
The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor with a minimum of effort and capability; but improve this easily attainable standard requires much application and more than a trace of wisdom.
If you merely try to bring just a little extra knowledge and cleverness to bear upon your investment program, instead of realizing a little better than normal results, you may well find that you have done worse.
Also, 98% of active money managers have been unable to beat the average stock market returns throughout history; what makes you think your different? Just food for thought.
Although I can be classified as conservative investor it is certainly not becuase of my advice in this circumstance. My advice to not to take out loans to gamble on the stock market is actually common sense and is not based on a conservative investing outlook. I'd question these "others" that you are listening to. I'd be real interested what has been their stock market returns over the last 10 to 20 years.
No, I don't care if their "picks" went up 68% in the last 3 months, but the thing you should care about is have they consistently beat the average stock market return over a 10 to 20 year period. I'd bet my house the answer is no.
Hey, it's your money dude. Take all the risks you want. But to assume the "market" is not going to go down over the next few years as you invest your borrowed money is an extremely risky proposition.
Why you should know that after living through the dates of March 2000 to October 2002, when U.S. stocks lost 50.2% of their value-or $7.4 trillion. And to think we are out of the woods yet, stocks are still considered overvalued by many compared to historical measures.
You missed my advice on this one. There is a difference between calculated risks and speculative risks on borrowed money. Speculative risking of borrowed money doesn't get less risky over time. There is a huge difference between investing with a long term horizon and just speculating. Again, do what you want. You already seemed to have made up your mind. No need to respond to this post. I'm done giving advice on this thread. Good luck.