News Archive

2009

2008

Have you overextended yourself?

Monday September 22, 2008

Stock market investment using borrowed funds an easily lead to disaster if you borrow too much and end up losing money. Especially in bear markets, you must consider every investment with the greatest scrutiny and be extremely careful in the investments that you make with borrowed capital.

While borrowing to invest is quite usual for people looking to make large returns by investing in shares, it is important to recognise that you must be extremely careful when risking borrowed funds. If you lose money on investments with borrowed funds, then you could find yourself in financial trouble.

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