Comments on: Investing With Leverage For Wealth http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/ Better self, Better life! Tue, 18 Aug 2009 10:08:43 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: alexscheelmeyer http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/comment-page-1/#comment-93 alexscheelmeyer Mon, 05 Jun 2006 05:40:04 +0000 http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/#comment-93 I think "Great Depression" missed the point entirely. In the article I am talking about real estate and not stocks. Real estate have the nice side-effect of giving you money from rent and therefore things have to go pretty bad in order for you to get in big trouble. In addition I am not saying you should just borrow money regardless of the circumstances, of course not. Using leverage should be seen as a tool, nothing more. You should not use leverage for investing in very high risk business (such as penny-stocks). You should also not disregard leverage on the basis of it being too "risky" if you have a very good deal on your hands with limited risk. For a follow-up to this article see Living In A World Of Risk : http://www.scheelmeyer.com/blog/2006/05/20/living-in-a-world-of-risk/ I think “Great Depression” missed the point entirely.
In the article I am talking about real estate and not stocks. Real estate have the nice side-effect of giving you money from rent and therefore things have to go pretty bad in order for you to get in big trouble.
In addition I am not saying you should just borrow money regardless of the circumstances, of course not. Using leverage should be seen as a tool, nothing more. You should not use leverage for investing in very high risk business (such as penny-stocks). You should also not disregard leverage on the basis of it being too “risky” if you have a very good deal on your hands with limited risk.
For a follow-up to this article see Living In A World Of Risk : http://www.scheelmeyer.com/blog/2006/05/20/living-in-a-world-of-risk/

]]> By: Great Depression http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/comment-page-1/#comment-92 Great Depression Sun, 04 Jun 2006 19:38:33 +0000 http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/#comment-92 Yes, the stock market will only go up on and of for time and all eternity. Therefore, let us borrow money to invest. Surely I loans will never be called, leaving us and the nation bankrupt for a generation. Yes, the stock market will only go up on and of for time and all eternity. Therefore, let us borrow money to invest. Surely I loans will never be called, leaving us and the nation bankrupt for a generation.

]]> By: CrossProfit http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/comment-page-1/#comment-29 CrossProfit Tue, 16 May 2006 12:42:46 +0000 http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/#comment-29 "it does not come naturally to borrow money as part of an investment" The reason is because on a downturn you could be leveraged out and lose part or all of your investment. One should never 'margin' their entire stock portfolio or 'leverage' their entire investment portfolio. It is risky. Disclosure: This comment was written by a CrossProfit analyst. This is a personal comment and may not reflect the opinion of CrossProfit.com. http://www.crossprofit.com “it does not come naturally to borrow money as part of an investment”

The reason is because on a downturn you could be leveraged out and lose part or all of your investment. One should never ‘margin’ their entire stock portfolio or ‘leverage’ their entire investment portfolio. It is risky.

Disclosure:
This comment was written by a CrossProfit analyst. This is a personal comment and may not reflect the opinion of CrossProfit.com.
http://www.crossprofit.com

]]> By: frugal http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/comment-page-1/#comment-23 frugal Mon, 15 May 2006 18:49:31 +0000 http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/#comment-23 Using financial leverages for investing is usually dangerous for amateurs. The reason is that the leverage works both way, magnifying both your gain and loss. An amateur trader often don't know when to cut their losses, or being too emotional with the market, and ends up losing more money. I only recommend using leverages under some circumstances. Click <a href="http://www.1stmillionat33.com/2006/04/leverage-the-secret-of-making-big-money/" rel="nofollow">http://www.1stmillionat33.com/2006/04/leverage-the-secret-of-making-big-money/</a> for my leverage post. Using financial leverages for investing is usually dangerous for amateurs. The reason is that the leverage works both way, magnifying both your gain and loss. An amateur trader often don’t know when to cut their losses, or being too emotional with the market, and ends up losing more money. I only recommend using leverages under some circumstances. Click http://www.1stmillionat33.com/2006/04/leverage-the-secret-of-making-big-money/ for my leverage post.

]]> By: Carnival of Investing #22 on InvestorGeeks http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/comment-page-1/#comment-22 Carnival of Investing #22 on InvestorGeeks Mon, 15 May 2006 02:53:40 +0000 http://www.scheelmeyer.com/blog/2006/05/09/investing-with-leverage-for-wealth/#comment-22 [...] Investing With Leverage For Wealth [...] [...] Investing With Leverage For Wealth [...]

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