Yeah back when margin rates were close to 1% it made a ton of sense to use margin. I was pretty cautious with it but bought a bunch of blue chip dividend stocks- altria, vz, etc at 1% rates and collected 5% dividends. For awhile I could even deduct the margin interest from my income.
At a 6% rate though, this is very risky. Your hurdle rate is just below the average market return rate. There are better ways to gamble on the market if that's what you want to do-UPRO and TQQQ come to mind, as well as options.
At a 6% rate though, this is very risky. Your hurdle rate is just below the average market return rate. There are better ways to gamble on the market if that's what you want to do-UPRO and TQQQ come to mind, as well as options.