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Financial Happenings Blog
Thursday, August 28 2008

In his latest article written for Alan Kohler's Eureka Report, Scott looks at whether it is really worth borrowing to invest in share markets.

Scott concludes that "Borrowing to invest remains a legitimate way of increasing the expected return of a portfolio, offering investors tax benefits, but these higher returns come at the cost of significantly increased portfolio volatility. Investors should be aware of this cost, the bias the financial services industry has toward borrowing to invest and the power of the simpler strategy of investing regularly over time in growth assets while building a passive income stream. They should consider all this before deciding whether the risk of borrowing to invest suits their situation. "

Click on the following link to read Scott's analysis - Is share gearing worth it?.

Posted by: AT 02:48 am   |  Permalink   |  Email
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