debt?, page-6

the question asked here sounds like it is coming from a lack of experience

if one is confident about making investments then one would not need to ask the question

in fact, if one is confident about making investments then one would not need to borrow

the GFC sorted out the margin loan investors

with a margin loan, generally, one can only buy blue-chip or mid-cap stocks

these kinds of stocks have not exactly been outperforming of late

best to avoid debt until you really know what you are doing, it terms of valueing an investment so one is buying in really cheap

i had a small $40K personal loan prior to the GFC to by some speculative stocks. pre GFC, my capital was 100% invested

the GFC sorted out my loan, my speculative investment falling from 50 cents per share to 10 cents per share

but i have now repaid that loan and I am sitting on 66% cash with 33% invested

no debt, plenty of cash, left my job, 100% on the ASX, beautiful bush & mountain view from my desk

feels good, feels safe

best wishes