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Re: Margin lending questionYes, of course. Plus you can buy shares not 'margin lending approved' like 2 cent specs, with the equity. You just don't get to use the equity in the shares you've bought to purchase further shares. The general idea with ML is however, IMO, that you buy good quality stocks that provide a dividend and the ML interest is offset by the dividends (to whatever degree) and the capital growth in the stock is free! (if the stock goes up of course) I think managed funds are good to buy with ML. If the funds average return is 10% and you're paying 8% interest on the loan then it's effectively 2% for doing nada. Long term investor plan of course...
Re: Margin lending question
Yes, of course. Plus you can buy shares not 'margin lending approved' like 2 cent specs, with the equity. You just don't get to use the equity in the shares you've bought to purchase further shares. The general idea with ML is however, IMO, that you buy good quality stocks that provide a dividend and the ML interest is offset by the dividends (to whatever degree) and the capital growth in the stock is free! (if the stock goes up of course) I think managed funds are good to buy with ML. If the funds average return is 10% and you're paying 8% interest on the loan then it's effectively 2% for doing nada. Long term investor plan of course...
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