Thoughts on borrow to invest and sports betting
Never borrow to invest
It is always good to invest the money you own. Investment made using borrowed money can be bad.
The main reason for this is that you cannot time the returns.
This is specially true for stocks and other markets.
It may be OK to borrow at a low rate of interest and lend or invest at a higher rate of return.
The big corporations do it all the time.
However when it comes to the common Joe we the people are tempted to borrow and put the money into speculative activities which can go wrong
When we have no cushion and little money to play with this can be a tricky situation.
I am not a big advocate of betting of any sort. However if you have to bet either out of compulsion or for fun always do so withing limits.
Never bet more than what you are prepared and comfortable to lose.
Also betting with borrowed money is inviting trouble.
Posted Using LeoFinance Beta