| Your approach is logically equivalent with buying ETFs on a margin. Such leveraged positions are considered inherently "risky". Everyone handles risk differently, for some people a 1% risk of a small loss might not be acceptable, whereas some other people essentially gamble their life savings. I'm sure your risk profile is "socially acceptable", but I think you're missing the main point of GP, i.e. there's additional risks that shouldn't be dismissed with an offhand remark. I'll also note that such leveraged positions make the assumption that: (1) you will continue to have a stable stream of income for mortgage repayment, (2) the stock market trends upward, (3) property markets won't fall dramatically, (4) interest rates won't rise dramatically. They sound rather independent at first but when the economy crashes those things suddenly happen all at once. As you may know, the economy crashes every once a while, and from a "frequentist" perspective something like this happening in the next 5 years is probably in the order of 1%-5%. That said, I'll grant you that the advantage of these leveraged positions are that it's "socially acceptable" to take the risk. No sympathy for those who gamble away their savings in a casino, but the class of people who became homeless because they speculated in the stock market instead of repaying their mortgages might get a bailout with public funds if they're lucky. |