Borrowing cheap money from the fed greatly boosts returns

If you’ve invested using debt/borrowing in the past you may believe that it’s a really bad deal, some brokers will charge you with hefty fees such as 9% APR interest! I’m here to tell you that there are profitable ways to invest your money without paying such fees here’s a list:

  1. Using a broker like interactive brokers to borrow from the fed, they currently offer rates around 2-2.5% interest APR, if you invest that in a high dividend stock the dividend will often be higher than the interest
  2. Purchase options, purchasing somewhat in the money options often reflects the same as buying a stock, however; you are able to buy nearly 3x the amount of stock using those options; one thing to be weary of though is to stay away from short term options because they are speculative and rely on the stocks short term movement and have much less time to stabilize if you market moves the wrong direction. As well, although long-term options are profitable there is a risk that you over-leverage and lose 100% of your investment in them.
  3. Use leveraged etf’s such as UDOW and UPRO, these stocks are tipple leveraged and purchase index such as the Dow Jones, and S&P 500, they face a lot less leverage risk, though there is theoretical possibility to lose your principle.

You can sign-up directly on their website, and they also have an invite based referral program; so I would really appreciate if you would be willing to let me refer you!

To do so you can send me an email from this contact form with your email and saying your interested in being referred:

Contact page to request referral

Please note that this article is purely my opinion and should not be used or considered as financial advice. This article is intended to help others think about investment concepts. If you are interested in concepts mentioned this article I recommend that you consult a certified professional to better understand the many risks including loss of entire investment or even greater than your initial investment from leverage.

 

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