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

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

  1. Surdo

    Surdo

    Sure, I was talking about the other side of his DIA mate!
     
    #11     Mar 20, 2009
  2. Ah, OK... Dammit, what a party pooper you are.
     
    #12     Mar 20, 2009
  3. ROTF ... have a great weekend! :D
     
    #13     Mar 20, 2009
  4. don't buy DIA, but the futures contracts... less interest
     
    #14     Mar 20, 2009
  5. I think it would be better to buy crude futures and s&p futures. You will have a lot more leverage so you can offset the 4% interest. The problem with futures is that the cost of carry is built into the derivative, so you have a hidden interest tax.

    With the futures trade, you would have to be in and out a bit more. You could buy the extreme dips, then sell the extreme rally's.
     
    #15     Mar 20, 2009
  6. Tell me more....
     
    #16     Mar 20, 2009
  7. JB3

    JB3

    LOL.
     
    #17     Mar 20, 2009