3rd Dec 2009 by Gary
The best way to finance an investment is with your own cash; at least in the case of stock, bonds and other securities. One way a number of people borrow money is with what is called carry trade, which means they get low-interest money and reinvest it in investments which generate higher returns. The Japanese yen has been the chief currency used for carry trade, although the low interest rates in America have made the U.S. dollar an increasing choice to use in that respect. The more money you borrow or if you choose to invest on margin, the higher the risk to you, the reason you should stick with investing from your own capital.
Like This Answer?
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com