Investors seem to have completely forgotten about the concept of risk thanks to a prolonged period of ultra-low interest and stock markets setting new highs. In particular, such an environment has a tendency to bring out the worst pieces of investment advice, such as taking out a mortgage to buy stocks. One would think warning signs would flash when non-investment professionals such as mortgage brokers offer this type of advice. Therefore, while this may ruffle a few feathers in the industry, let’s tackle this recommendation head-on and hopefully show why it is a terrible strategy.
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Source: Financial Post, CREA