Black Monday

[fish]

Can you double check fish? Im on 6% even. Might be me that needs to do the negotiating.

I double-checked before quoting the figure.
I have negotiated with them before.
I do have lots of business with them
Like couta I also have a mortgage so i can invest more-I pay 4.35 % on this which is a bigger loan and i also annually have to negotiate a better rate
A !% difference or more makes a big difference over the years.
The variable mortgage rate is 5.5% so i was happy to settle for this rate in margin lending as it is the equivalent.

[ratkin]

What colour Monday is it today?

[fish]

I feel the need to caution about margin learning in case I have mislead novice investors
For most there is an obvious danger.
I have made 3 mistakes in my investing that stick in my mind- none of which have had any major consequence because of my financial position
It works out as 1 a decade.
the first was equitycorp-it was when i was in a syndicate.Hawkins went to Jail.
The second was brierly-the directors mislead and some escaped with lots of money
The third was nzo-again those responsible escaped
It has taught me that you cannot trust all those running a company-many have an obvious conflict of interest.
I will probably stop margin lending if my other sources of income stop.
For me it is tax deductible.
Advantage are many as are risks.
In the current situation I look to drops in sp as buying cheaply.
This forum is good reading as it makes me consider stocks that have fallen below their value to me.
I already have ideas as to what to buy today.
I wont spend much painful time agonizing over what to buy-I am trying to diversify my portfolio and trust some of the posters so they will be quick decisions rather than guesses

[Peitro]

What colour Monday is it today?

Christmas Monday, just one lump of coal

[bull....]

anyone who started margin lending recently wont be singing the praises about it

[percy]

I feel the need to caution about margin learning in case I have mislead novice investors
For most there is an obvious danger.
I have made 3 mistakes in my investing that stick in my mind- none of which have had any major consequence because of my financial position
It works out as 1 a decade.
the first was equitycorp-it was when i was in a syndicate.Hawkins went to Jail.
The second was brierly-the directors mislead and some escaped with lots of money
The third was nzo-again those responsible escaped
It has taught me that you cannot trust all those running a company-many have an obvious conflict of interest.
I will probably stop margin lending if my other sources of income stop.
For me it is tax deductible.
Advantage are many as are risks.
In the current situation I look to drops in sp as buying cheaply.
This forum is good reading as it makes me consider stocks that have fallen below their value to me.
I already have ideas as to what to buy today.
I wont spend much painful time agonizing over what to buy-I am trying to diversify my portfolio and trust some of the posters so they will be quick decisions rather than guesses

Good advice.
I have not had any borrowings for just over 30 years.No mortgage.No overdraft.Has its advantages."well positioned."
At the present time I am neither buying or selling.Will wait until I think the markets have settled.

[fish]

anyone who started margin lending recently wont be singing the praises about it

agree
but if it refers to me I don't just sing the praises
It works for some and can be a disaster for others
It is a means to make a lot of money-or to loose a lot
But I do it for the dividends-which as long as they outpace the interest rate I pay profits roll in
If anyone contemplates doing it then timing is important.
The reserve bank last week stated no rise in interest rates for at least one year hence I can happily buy shares which I feel dividends will keep rolling and sell those such as contact which this year look to have reduced the dividend with no imputation credits-I need these to reduce my tax burden.
Its complex and you have to be rational and not emotive.

[bull....]

agree
but if it refers to me I don't just sing the praises
It works for some and can be a disaster for others
It is a means to make a lot of money-or to loose a lot
But I do it for the dividends-which as long as they outpace the interest rate I pay profits roll in
If anyone contemplates doing it then timing is important.
The reserve bank last week stated no rise in interest rates for at least one year hence I can happily buy shares which I feel dividends will keep rolling and sell those such as contact which this year look to have reduced the dividend with no imputation credits-I need these to reduce my tax burden.
Its complex and you have to be rational and not emotive.

wasnt referring to anyone just highlighting how margin lending is a double edged sword

[couta1]

agree
but if it refers to me I don't just sing the praises
It works for some and can be a disaster for others
It is a means to make a lot of money-or to loose a lot
But I do it for the dividends-which as long as they outpace the interest rate I pay profits roll in
If anyone contemplates doing it then timing is important.
The reserve bank last week stated no rise in interest rates for at least one year hence I can happily buy shares which I feel dividends will keep rolling and sell those such as contact which this year look to have reduced the dividend with no imputation credits-I need these to reduce my tax burden.
Its complex and you have to be rational and not emotive.

Floating rates won't move much with the OCR staying the same for a year or so but fixed rates will be on the rise due to the US putting up interest rates, our fixed rates are funded by overseas money. I just refixed my share loan at 4.89% for 3 years, interest only basis. PS- The Banks are becoming more resistant to approving interest only loans beyond a certain period nowdays.

[winner69]

Good day on the bourse today with the index up

Bit of irony in that NZX itself is one of the biggest losers