Open Question
Does anyone think the market is low enough to go on margin by 10-20%, especially
with interest rates so low? Assume that all stocks bought would be beaten up
large caps, 4 and 5 Stars (S&P) that can't go much lower, and have great
histories of paying and increasing secure dividends. The dividends would
gradually pay for the borrowed money, not to mention the price appreciation. I
wouldn't need to withdraw the dividends or sell the stock in the distant future.
It would be diversified in 10 different companies across at least 5 different
sectors. I think it's a great idea. Thoughts?
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OK I just watched Jim's MM segment where he talks about what to buy next week.
That's exactly what I'm talking about. Several of the ones he mentioned would be
on my list of 10, with 10% in each stock.
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No, BAC would not have been on the list of things to buy. They would be stocks
not so controversial and not talked about negatively, if at all. Casualties of
a down market but less chance of going bankrupt. And if all companies go
bankrupt, no one will have any money anyway. Get that veggie garden going next
spring. I'm buying a tiller for Christmas.
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you mention beaten up large cap, you mention dividends and another question your
thinking about banks.....let me read your mind..........your thinking of BAC!
well....when they cut the divy....it will be an opportunity for the you, the fed
and me to pick up some cheap bank stock.
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Well I was just looking at all these high profile rich money managers who use
margin to make more money when the market goes back up. Problem is, they stayed
on margin when the market went south, triggering the margin call. The mistake is
using it too long, and when the market is going down, not up. I didn't mean
first thing Monday morning necessarily. BTW, market should be down. A black
Monday perhaps. Reports coming out is the G7 already has a plan (I thought they
were working on it over the weekend, but apparently it's done) and the feedback
is that it's just another band-aid on a cancer patient. Not enough.
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Don't buy on margin - you'll lose it all.
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and why can't they go much lower? what possible special powers do they possess?
what if........the bear is still in power for 2 more years....you willing to
risk losing half of whatever you buy while using it on margin....margin, where
you have to pay to borrow that money, win or lose.
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the problem is many beleive this is only the middle of the bear market and its
going much lower,,,i personaly think we r getting close too the bottom ,maybe
another 10% lower and that would make it over 50% down from the high .i don't
think useing margin here is a great idea but if u r buying safe stocks it would
seem alright
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ha ha ha ha...funny....go on margin....are you just plain mad?
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