Saturday, March 19, 2022

Should you borrow to invest money in the markets?

Also known as leverage, borrowing to invest in the stock market is a high-risk strategy since stock market gains are unpredictable.

Before you decide to commit to it, consider all possibilities and ensure this strategy meets your overall financial goals and risk tolerance.

An investment made from borrowed money may underperform, making it hard for you to repay the loan and interest.

The risk associated with leverage is justified when the net return is higher than the cost of the loan over the long term.

Want to know more? Should You Borrow to Invest? 5 Important Factors to Consider