Get a loan at 4% to invest long term in the Dow Jones?

Discussion in 'Economics' started by crgarcia, Mar 20, 2009.

  1. What you think?

    Get a loan at 4% to invest long term (at least 3 years) in the Dow Jones?
    Buying DIA ETFs.

    I forgot to clarify:
    This is NOT a personal loan.
    It's a loan for an investment company.
  2. on behalf of stock_turd3r, i hereby declare this is the best idea ever posted on ET.
  3. spersky


    Horrible Idea. In 5 years we will likely be even lower than we are now.
  4. duffman


    Thanks for the laugh.
  5. Actually, it might not be such a bad idea, what with the printing press running at capacity. If it keeps going, Dow in nominal terms might just go to the moon and nothing beats being a borrower when inflation's high.
  6. What I think? I think you are extremely desperate. What you are doing is a carry trade with the Cash/DIA "currency" pair, which is always risky. Value investors don't do this, by the way.
  7. This is a terrific idea. Leverage is a wonderful tool, the more the better.

    And you have a nice house which I'd like to buy in foreclosure.
  8. Surdo


    How do I take the other side of this trade?
  9. You can lend me money at 4%.

    What size can you do? I am interested...
  10. What does the word likely mean?

    Do you have psychic abilities?
    #10     Mar 20, 2009