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Take Out a Loan to Invest: Is It a Good Idea?

Taking out a loan to invest is not something that many people would recommend. However, if you’re going to take the risk of investing your money in the stock market and get a higher return on your investment than what you could earn from an interest-bearing savings account or certificate of deposit, then it might be worth considering taking out a loan.

The reason most people don’t recommend this approach is that if the investment doesn’t pan out, you could be in a lot of trouble financially. When deciding whether or not to take out a loan to invest, you’ll need to weigh the pros and cons carefully. This article will help you do just that.

What Type of Loan Can I Get?

There are different types of loans that you could get for this unique situation. However, the type of loan you can get to invest will depend on your credit score and your credit history. The same-day personal loans that you can get from a bank or credit union are a good option for this type of investment. This is because the interest rates on these loans are typically lower than what you would pay on a credit card. Besides, a personal loan can be used for any purpose, so you don’t have to worry about explaining why you want the money.

How Will I Pay It Off?

The other important consideration when taking out a loan to invest is how you will pay it off. If you’re going to use the loan to buy stocks or mutual funds, then you’ll need to have a plan for paying off the loan if the market goes down and you lose money on your investment. One option is to set up an automatic payment plan that will deduct the payments for the loan from your bank account each month. This will help you avoid any late fees or penalties.

Should I Invest That Money?

This is the question that you’ll need to answer before taking out a loan to invest. The stock market is a risky investment, and there’s no guarantee that you’ll earn a profit on your money. However, if you’re comfortable with the risk and you’re willing to potentially lose some or all of your investment, then investing in stocks or mutual funds could be a good option.

Where Should I Invest It?

Another important question to answer before taking out a loan to invest is where you should invest your money. There are many different options available, and the one you choose will depend on your risk tolerance and investment goals. If you’re looking for a conservative investment, then a certificate of deposit or a government bond might be a good choice. If you’re willing to take on more risk, then you could invest in stocks or mutual funds. Besides, there are a variety of other options available, such as real estate or precious metals. You can also invest in crypto, although this is a more volatile investment.

Pros of Getting a Loan

There are several reasons why taking out a loan to invest might be a good idea. First, if you have a good credit score and a solid credit history, you could get a lower interest rate on the loan than what you would pay for a credit card. This could save you a lot of money in the long run. Second, if you have a plan for how you will pay off the loan, you can avoid any late fees or penalties. Finally, by investing in stocks or mutual funds, you could potentially earn a higher return on your investment than what you would get from an interest-bearing savings account or certificate of deposit.

Cons of Getting a Loan

There are also several reasons why taking out a loan to invest might not be a good idea. First, if the market goes down and you lose money on your investment, you could end up in debt. Second, if you can’t pay off the loan, you could end up with a high-interest rate and a lot of debt. Finally, if you’re not comfortable with the risk, you might be better off investing in a more conservative option.

In conclusion, taking out a loan to invest is a big decision that should not be taken lightly. You’ll need to weigh the pros and cons carefully before making a decision. By considering the questions in this article, you’ll be able to make an informed decision about whether or not this is the right option for you.

PENN Gains After Susquehanna Prediction

Privately held trading and technology firm Susquehanna boosted its rating on Penn National Gaming stock to Positive from Neutral this week.

PENN has been described as a stock with a steady regional land-based casino portfolio whose most sensitive value driver is linked to the success of its emerging digital offering. It operates 44 facilities in the United States and Canada, many of them under the Hollywood Casino brand.

PENN observed a deep contraction in Q4 of 2021 along with its competitors, due to concerns of high competitive rivalry, and the Omicron variant disrupting sporting events. Analysts predict that PENN stock has a 59% chance of a rise during the next 21 trading days.

Moving forward, Susquehanna thinks PENN’s digital efforts can inflect positively on the back of new market penetrations, important integration milestones in Q3 and on the competitive landscape a view that Caesars Entertainment is likely to lower its digital investments.

Susquehanna notes a price target of $65 to rep more than 30% upside potential. Shares of Penn National Gaming gained 3.30% in premarket trading to $49.70.

In recent months, sports and pop-culture blog Barstool Sports, which PENN owns a 36% stake in has been hit with more controversy. Business Insider published a second hit piece about the leadership at Barstool, which was published just hours before the company reported quarterly earnings.

PENN CEO believes the timing of both hit pieces is suspicious.

How To Decide On A Good Investment To Diversify Your Portfolio

Keen to build an investment portfolio? It’s a myth that only the rich and wealthy can afford to invest in securities. Given the right information, anyone can make an informed decision about what investments are best for their own personal situation.

There is no such thing as a “safe” investment but there are certainly safer ones than others. The long-term goal of investing is not to get rich quickly, it’s to build wealth over time while managing risk and bolstering your financial security.

Here are some tips for choosing the best investment mix: 

1) Invest In NFTs

A non-fungible token (NFT) is a one-of-a-kind, non-transferable data unit kept on a blockchain, which is a type of digital ledger. NFTs can be linked to digital assets that can be reproduced, such as images, movies, and audio. Blockchain technology allows these digital assets to be authenticated and cryptographically signed, verifying the authenticity of a transaction. It also records a timestamp for any transactions involving that asset or property, which can then be linked to previous titles or deeds. You should consider investing in NFTs because they are a new and exciting asset class, as well as an effective way to diversify your portfolio. However, while they have a great deal of potential, it’s important to be careful and do your research.

2) Invest In Cryptocurrencies

When Bitcoin was released in 2009, it proved to be the first reliable cryptocurrency. Since then, many other cryptocurrencies have been introduced because of their decentralised nature and global appeal. Cryptocurrencies are not controlled by banks or governments, thus they are highly secure against inflation. They are also anonymous because transactions are linked only with a series of complicated alphanumeric addresses, making them very difficult to trace. Consider investing in cryptocurrencies because they are a volatile asset class but also present huge potential upside. However, it’s important to remember that cryptocurrencies are high-risk investments that can fluctuate wildly in value. That’s why you should always monitor the news and other market factors that might affect the value of your investment.

3) Invest In Real Estate

Real estate is often considered a safe investment because you are investing in something very tangible. However, many people find it difficult to invest in real estate because it typically requires a large amount of money upfront. If you’re considering investing in real estate, you should keep an eye on market trends to make sure it’s a good time for you to buy. You should also be wary of scams that falsely claim to guarantee returns or fix problems with your property. Investing in real estate is a great idea because it guarantees consistent cash flow, but it’s very tricky because there are a lot of expenses involved from maintenance to management. You should do your homework before investing in real estate.

4) Invest In Stocks

Investing in stocks is a great way to earn money while diversifying your portfolio. The stock market can be volatile but there are plenty of resources to help you monitor trends and make smart investments. When investing in the stock market, you should avoid pump-and-dump scams by only buying stock in companies that have been around for a while and are well-established. Investing in stocks is a good idea because it’s relatively low risk but yields very high returns if your investment is successful.

5) Invest In Mutual Funds

Mutual funds are increasingly popular because they allow people with little money to invest in the stock market in a diversified way. There are three main types of mutual funds: index funds, managed funds, and money-market or stable value funds. Investing in them is smart because they don’t require a large amount of money to get started and allow you the opportunity to diversify your portfolio without going too far out on a limb. For example, investing in index funds can give you exposure to thousands of different companies. If your portfolio is very stable with little risk, you should consider investing in mutual funds.

How To Choose The Best Investment For Yourself?

There are several factors to consider when deciding on a good investment. The main things you should look at are how much money you have to invest, the amount of risk involved, and how much time you want to put into your investments. If you strictly want to make money with little effort, you should stick with low-risk investments such as mutual funds or index funds. Keep in mind that the best thing would be to consult a professional regarding the best investment mix for you. They should be able to find a good balance that will yield high returns and keep your money safe.

Investing in any of these types of investments is a good idea because it diversifies your portfolio, but you should do your research before investing to make sure that the investment will be right for you. Always remember to weigh out all the pros and cons when deciding what type of investment would work best with your current situation!

Valuable Facts You Need To Know Before You Start Investing

For many, many years people have been investing in numerous things. Some of them were more or less successful. As a newbie, this whole process may appear to be a bit intimidating at first.

And that’s completely understandable, however, if you get your facts straight and get yourself familiar with some things, you can definitely succeed. Just bear in mind that you’re not the only one who is doing it.

A lot of people have done the same and have managed to turn their life around. With a little bit of patience, effort, and discipline, anything can be done. To help you out, we’ve put together some extremely useful tips. Let’s check them out together!

Important Things Every Investor Should Know

Your Net Worth Must Be The Primary Personal Finance Number You Care About

So what does the term net worth even mean? What does it represent? It is actually the total value of all the things you own, such as your vehicle, house, and stuff that can quickly be resold, along with the balances of your savings accounts, checking account, or any type of investment that you have.

Of course, you also have to take into account the things that you’re forced to spend your money on, such as student loans, credit cards, mortgages, and many others. The whole point is to focus on the money that you already have and how you can increase that amount.

There are so many different ways you can do it. For instance, you can start by paying off all your debts, stop wasting money on things you do not necessarily need, and find a way to enhance your income.

One of the best ways to do it is to invest. Now, if you do not have a long-term perspective about certain things, then maybe investing is not the best option for you for the time being, or if you think that your current checking account balance is more crucial than your net worth.

Understand The Stock Market

There are some terms that you need to comprehend before you even begin. For example, when people say that the stock market is being down or up, they generally think of the biggest market indexes.

Namely, this index monitors the performance of various stocks which either represent a specific area of the market or the market as a whole. For instance, if you’re interested in the South African stock market, you can check out JSE Top 40 index to see what’s currently going on. Generally speaking, investors utilise indexes to assess the performance of their portfolios and sometimes, to state their stock trading decisions.

Furthermore, if you want to, you can always invest in a whole index by using exchange-traded funds and index fund, or even ETFs which supervise a particular index or one sector of the market.

Providing New Investors With More Useful Tips

You Must Pay Off All Your Credit Cards As Well As Other High-Interest Debts

If by any chance you have high-interest debts, anything that’s over eight percent interest rate, then one of the best things you can do for yourself is to work on paying down that debt. Namely, you are going to save so much money just by paying off the debt from your credit cards.

As previously mentioned, paying off any of your debt is going to have a huge, positive impact on your overall net worth which will lead to its slow increment because nothing will hold it back. More importantly, all of this will lead to fewer monthly costs, which means that you will have much more cash to invest than you did before.

All in all, if you have these high-interest debts, you should prioritise them and pay them off as soon as possible before you proceed with investing. Not only will they provide you with a better return, but you will drastically enhance your monthly cash flow and enhance net worth.

Assess Your Comfort Zone In Taking On Risk

The ugly truth is that every investment comes with certain risks and that’s something nobody can deny. If you want to acquire securities, like stocks, mutual funds, or bonds, then it’s of huge importance to comprehend everything before you proceed.

Otherwise, you are going to lose a bunch of money. Generally speaking, the cash you spend on securities normally isn’t federally insured. What does it mean? It means that you could potentially lose the amount of cash you’ve invested.

This can happen even if you acquire your investments via a bank. Does it mean that you shouldn’t risk at all? Definitely not! Who knows, maybe if you invest some money, you receive an amazing investment in return.

Furthermore, if you have a long-term financial goal, it is highly likely you’ll earn more money if you smartly invest asset categories with bigger risks, such as bonds or stocks, rather than focusing on assets with less risk.

On the other hand, if you have a short-term financial goal, then you can freely invest your money only in cash investment. The biggest problem when it comes to investing in cash equivalents is definitely inflation risk.

Your Spouse Must Agree With Your Plans

Of course, this segment refers to those who are married. Now, if that’s the case with you, then it would be recommendable to talk to your spouse about your financial plans and see what he or she thinks about it.

Moreover, this conversation should cover three major points. The first one explains your goals. Why are you focusing on a particular investment? What do you want to accomplish with it? The second one should refer to the plan.

Did you create any plan that is going to help you achieve this goal? Do you think that what you’re doing makes sense at all and where are the accounts and whose name did you put on them?

If you do not have this type of conversation with your partner, then you will potentially cause a huge problem? How come, you probably wonder? Well, that’s because if your spouse notices that the money is slowly vanishing he/she will want to know what is going on.

Nobody can ever tell you what you can and cannot do with your money, however, it doesn’t mean that you shouldn’t be smart about it. That’s precisely why we’ve created these guidelines, to help you be and stay successful on this journey.

2 FTSE 100 stocks to buy that I’d consider right now

I reckon it’s a good idea to invest in a few good quality FTSE 100 shares. I think these two pay decent dividend yields and have reasonable prospects for growing their dividends a little each year from where we are today.

Meanwhile, each firm has an undemanding valuation, which bodes well for future expansion of their share prices.

Retailing

FTSE 100 clothing, footwear, accessories and home products retailer Next (LSE: NXT) looks set to become a survivor in what has become a difficult sector. I think that’s because of the success of its catalogue and online sales strategy working in harmony with the store estate.

The second-quarter trading update released at the end of July revealed to us that sales and profits edged up by modest single-digit percentages in the period. I think that’s a far better trading outcome than many struggling retailers have been experiencing lately.

The good trading was better than the directors had previously anticipated and they increased full-price sales guidance for the second half of the year to an anticipated increase of 3% rather than 1.7% as stated earlier. Things are moving in the right direction and I think the stock is attractive.

At the recent share price close to 6,007p, the forward-looking earnings multiple runs just below 13 for the trading year to January 2021 and the anticipated dividend yield is around 2.9%. City analysts following the firm are pencilling in modest increases in the dividend ahead. I think Next looks like a stalwart that I’d be happy to add to my portfolio.

Paper & Packaging

Despite delivering decent-looking half-year financial numbers with its interim report at the beginning of August, paper and packaging firm Mondi (LSE: MNDI) saw its share price fall back on the news.

I think the move happened because the stock market is always looking ahead and trying to anticipate trading down the line. The figures were good, yes, but chief executive Peter Oswald said in the report they were achieved “against a backdrop of increasingly challenging trading conditions.” That, I reckon, was enough to spook the market.

But Oswald went on to say the firm’s “relentless” focus on continuous improvement is set to lessen the impact of trading pressures in the firm’s markets. I reckon the firm’s multi-year record of steady growth in revenue, earnings, cash flow and the dividend bodes well for future progress, despite any macro-economic wobbles we might see from time to time.

I like the stock and see the current weakness in the share price as an opportunity to hop aboard the story on better terms. The recent share price close to 1,595p throws up a forward-looking earnings multiple of just over nine for 2020 and the anticipated dividend yield is a little under 5%. I think that looks like decent value.

Disruptive Trading App Set to Fundraise Over USD 200 Million

The Robinhood trading app pursuing an equity fundraise means that, in exchange for the money invested now, investors will receive a stake in the company and its performance moving forward.

United States-based stock and crypto trading app Robinhood is set to raise at least $200 million in a new funding round, Bloomberg reported on May 24.

Robinhood is an American financial services company headquartered in Menlo Park, California, known for pioneering commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app introduced in March 2015.

Per the report, an unspecified source familiar with the matter told the outlet about the company’s plans to raise further funding. Moreover, Bloomberg reports that the round would increase the firm’s value to between $7 billion and $8 billion, but that the details could change.

Other people familiar with the matter also told Bloomberg that the new funds come from existing investors, all of whom asked not to be identified and to keep the details private. While the funding talks are reportedly ongoing, a further funding round could increase the company’s worth to $10 billion, but the numbers are subject to change until the deal is closed.

Robinhood, which allows for zero-fee stock trading, first introduced bitcoin (BTC) and ether (ETH) trading in January last year.

As Cointelegraph reported earlier this week, Robinhood has officially launched its crypto trading app in New York following the acquisition of a BitLicense by the New York State Department of Financial Services in January 2019.

Also during this week, the new April 2019 Exchange Review from crypto data provider Cryptocompare revealed that centralised cryptocurrency exchanges saw a major uptick in trade volume this April.