| Wlakiz said:
Of course there are risks to investments, if there are no risks then everyone would be fighting to invest on it. But my point was to address the mentality that once you're in debt you should not invest/buy things. I don't agree with it. The banks and creditors won't love you more because you pay off their debt tomorrow; in fact, they are less likely to invest on your business if your prioritize paying off your debt instead of growing your business. Their only concern is your ability to pay them back through valuation or revenue, nothing more. As for Sony stocks. I bought a bunch around $16, I am losing about $300-400 ish but you know what? The loss is probably less than the people who bought apple around 600 or 700. The lesson of the day is Bears make money, Bulls make money but Pigs get slaugtered. Invest on market trends and not on greed. If I have a bit more cash in hand, I wouldn't mind investing a bit more in Sony and buying a bit of those convertible bonds. They are making progress in cutting their losses and their diverse investments gives them a bit of resilence to market shifts. In any case, if you're looking for places to put your money, investing in energy and resource is always a better bet than investing in technology even on 'winners' like Apple and Google. |
I think you have to know yourself, and from what I have seen most people who get into debt did so in part because they were not good with their money or understanding the concepts you are stating. Some people don't invest because, frankly, they don't have a clue where to start.
Likely in your example I would invest the 70K because I could expect an annual yield between 7-11% (or 4.9k to 7.7k) conservatively which is more than paying down my mortage would benefit me in that time and each year the gap would only widen. So, I agree it works for those that see how money works and making money off money.
Let us look at your Sony investment.
If you bought 100 shares (my minimum order) right now you'd be down $600 dollars on principle. If you paid $16/share that means purchased roughly in April/May range so you did recieve a $28 dividend between then and now. So, down 36%.
Market trends for 2012 show DOW up 3%, Nasdaq up 10%, and S&P up 8%. It has been a market where one could reap some nice gains recently.
I would be curious a year from now what you'd expect Sony to be at?
