For the past few months, I’ve been “in the red” in my investing account because I’ve been buying some stocks on margin, which basically means that I’ve been borrowing money from the brokerage in order to buy more stocks. I use Interactive Brokers and their interest rate is ridiculously low at around 1.5% so even with my conservative stocks, I can earn more money than that quite easily through dividend payments. Except now, I’ve just transferred a lot of money from my savings here in Korea to my brokerage account and I’m “in the black” by a few thousand dollars and it’s just sitting, not really earning any interest.
Having too much money really isn’t a problem, and I could just buy more stocks but the markets are at record highs. And with rising interest rates, it’s a terrible time to be buying bonds. What to do? Any advice, readers of this blog for any good values out there? I prefer quality companies with solid track records of increasing dividend payouts with low payout ratios. But, I would consider a move into ETF’s in an under-performing industry or region.