[USER]

Has anyone tried taking out a heloc loan (or any loan) and investing in an index fund during a downtown?

Any comments on this from people who have looked into it or done it, because the math seems to work out so long as market goes up long run

[Anthony]

When HELOC was at 2.5 I did that. But at 6.75-7 I’m not even thinking about it.

[Julia]

Isn’t that one of the things that contributed to the mess that was the 1929 stock market crash?

[John]

no. FIRE people avoid debt like the plague as a rule. We buy assets (emphasis buy) and avoid liabilities until we can afford them.

[George]

Only if the index goes off 1/3 or more. I applied for HELOC and was close to taking money out during the Covid crash.

[James]

Needs to go down further with the higher interest rates today.

[Author]

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