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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Tapcon who wrote (22910)12/6/2004 11:08:13 AM
From: Carlos Blanco  Respond to of 110194
 
In other words, is it not rational in this environment to leverage the purchase of commodities like houses with cheap long-term money?

Does it now make sense to borrow long and puchase commodities likely to inflate?


i think so--if if i had the mental strength, i would do it. but personally, i'm too chicken, because i don't know whether i can sleep well and not panic while being leveraged and undergoing a temporary move against me. e.g. it's hard enough to be holding gold & gold stocks at the moment with the lousy action and everybody expecting a correction, so i don't think i could do it if i was using money that i had taken on loan. it all depends on your risk tolerance and other sources of income.