oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
Markets are somewhat predictable in the long run, for example buying a house while prices are cheap and the cost of borrowing is low is a path to building wealth. There is little difference in principal between borrowing money to buy a real asset and borrowing to buy a financial asset.
I agree with the last sentence - both are assets, in one case you get a deed, in one case you get a cerficate of ownership for your little corner of a corporation. Legally, your rights to own property in the US are protected in both cases.
But IMO you're missing the point about market timing. When you buy a stock or a house because you like today's price that is not timing. But if you wait for the price of a house/stock to come down, that is 'timing' (predicting a future price).
"Somewhat predictable in the long run" - if you mean that house & stock prices trend ever upward over decades - yes, that is predictable. But waiting for better price so that you can either buy or sell - that's 'timing'.
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Fri Jan 10, 2014 1:28 pm |
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Radix3d
Preferred Member
Cash: $ 21.60
Posts: 105
Joined: 20 Mar 2013
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quote:
Originally posted by oldguy
quote:
Markets are somewhat predictable in the long run, for example buying a house while prices are cheap and the cost of borrowing is low is a path to building wealth. There is little difference in principal between borrowing money to buy a real asset and borrowing to buy a financial asset.
I agree with the last sentence - both are assets, in one case you get a deed, in one case you get a cerficate of ownership for your little corner of a corporation. Legally, your rights to own property in the US are protected in both cases.
But IMO you're missing the point about market timing. When you buy a stock or a house because you like today's price that is not timing. But if you wait for the price of a house/stock to come down, that is 'timing' (predicting a future price).
"Somewhat predictable in the long run" - if you mean that house & stock prices trend ever upward over decades - yes, that is predictable. But waiting for better price so that you can either buy or sell - that's 'timing'.
That would be a good criticism if he were say, hoarding cash waiting for the right time to get in, and missing any intermittent gains. But that is not the case we're talking about something that is completely elective. He doesn't have to use the credit that part is completely elective and he wont lose anything on his current investments. He can afford to be patient, and if the opportunity doesn't come along so what? I would invest cash in 100% stocks right now but I also wouldn't borrow money to do it, at least not at this time. But there will come another time the market always has an occasional crash.
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Fri Jan 10, 2014 2:19 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
I would invest cash in 100% stocks right now but I also wouldn't borrow money to do it, at least not at this time. But there will come another time the market always has an occasional crash.
Maybe the Market will chug along until it gets to about Dow 22,000 in a couple years, then it will do an occasional crash to maybe 18,000 (a 4000 point crash is fairly substantial). So then he can jump in and buy at 18,000. Or - he could buy today at 16,400? 
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Fri Jan 10, 2014 3:31 pm |
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Brownsfan2k5
Full Member
Cash: $ 20.90
Posts: 93
Joined: 27 Feb 2013
Location: Military
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Well this has been an interesting discussion! Ha. I do appreciate all the feedback. Question: if I use the check (provided in the letter mailed to me) to invest the whole $7,000 limit will that get considered a cash advance (not supported by the 0%) or will that she count as 0% for 18 months? I feel the best way to use this credit would be to invest the whole $7000 upfront otherwise I won't see much gains, if any.
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Fri Jan 10, 2014 9:21 pm |
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Radix3d
Preferred Member
Cash: $ 21.60
Posts: 105
Joined: 20 Mar 2013
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quote:
Originally posted by Brownsfan2k5
Well this has been an interesting discussion! Ha. I do appreciate all the feedback. Question: if I use the check (provided in the letter mailed to me) to invest the whole $7,000 limit will that get considered a cash advance (not supported by the 0%) or will that she count as 0% for 18 months? I feel the best way to use this credit would be to invest the whole $7000 upfront otherwise I won't see much gains, if any.
Are you sure you are allowed to take a CA for the full credit limit? I'm pretty sure you can't but maybe your situation is different. You need to study your credit card agreement.
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Sat Jan 11, 2014 10:00 pm |
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