If OP’s post is real I’d start calling mental health professionals.

A HELOC rate in the 7s and a mortgage in the 8s is not a winning strategy, PP.

When 30 yr mortgage rates were sub 3% and there was no cap on SALT, the upside of borrowing more to invest in the market was pretty high. With mortgages at 8.5% and the SALT cap in flux, the upside is much more limited.

Anonymous wrote:People were saying to not invest in Nvidia 5 years ago and it was going to crash. Look at where Nvidia is now. Always remember that people always say there are bubbles and never are shamed into not giving their opinions again when these bubbles never burst.

People were saying Apple was a goner when Steve Jobs died too.

Hindsight is always 20/20. For every Nvidia, Apple, Amazon, there are thousands of companies that don't make it. Are you willing to bet your house picking the next future winners?

Anonymous wrote:People were saying to not invest in Nvidia 5 years ago and it was going to crash. Look at where Nvidia is now. Always remember that people always say there are bubbles and never are shamed into not giving their opinions again when these bubbles never burst.

People were saying Apple was a goner when Steve Jobs died too.

recency bias
/ˈrēsən(t)sē ˌbīəs/
noun
noun: recency bias
the tendency to be disproportionately influenced by recent occurrences when evaluating or making a decision about something.
"one way to reduce the recency bias is to look at more data over time"

Anonymous wrote:DH is convinced this is a brilliant move and has initiated a second mortgage on our house. $300K 30-year fixed APR at 8.49%. This gives us $950K debt total on a $1.3M house.

Wants to buy in to AI stocks before it is too late. Is everyone else doing stuff like this and I’m just overly conservative? This seems like a bad move.

Commit him to a mental hospital.

People were saying to not invest in Nvidia 5 years ago and it was going to crash. Look at where Nvidia is now. Always remember that people always say there are bubbles and never are shamed into not giving their opinions again when these bubbles never burst.

People were saying Apple was a goner when Steve Jobs died too.

Oh, hell no!

Anonymous wrote:We did this but with a triple leveraged Nasdaq fund (TQQQ). With annual returns averaging 8-10% (not accounting for inflation, so more like 6-8% real returns), we are almost guaranteed an annualized return of 20-24%. Our current HELOC rate is 7.625%, so we are basically printing $50k annually for the next 25 years. I thought everyone did this?

No, only the idiots do.

We did this but with a triple leveraged Nasdaq fund (TQQQ). With annual returns averaging 8-10% (not accounting for inflation, so more like 6-8% real returns), we are almost guaranteed an annualized return of 20-24%. Our current HELOC rate is 7.625%, so we are basically printing $50k annually for the next 25 years. I thought everyone did this?

Crazy. And dumb.

Of course this is not a good move.

Omg do not do this!!! He cannot be for real.

This is not a good move at that 8.49% rate. That rate is way too high to consider this. People, including Financial Planners, would love a guaranteed 8.49% return and you have to beat that number to make this work.

Easy pass.

This is smart move, no sarcasm.

Housing is a depreciating asset going forward for a variety of reasons (unless you live in Silicon Valley or Seattle ).

You take out the fixed rate loan and put it into the stock market and become part of ownership class. I would aim for Palantir and OpenAi, still have room to run when they are used by gov for everything.

I am always skeptical of “this time is different”, but the current epoch is changing, to a world where there are owners and serfs with most productive and valued work done by machines. Get on the ride side of history.


I am always