I have an etrade Line Of Credit that is leveraged against a brokerage account with rather aggressive nyse etfs (heavy in nasdaq).
- Brokerage acct total 330k
- LOC total 150k
Rather than pay down the LOC I continue to add funds to my leveraged account as the market returns have outpaced my LOC roi. With the FED's strategy to curb inflation I'm thinking it may be time for my modify my strategy.
- A) pay off the loc in total, using market assets. I don't like this idea because the markets have taken a good hit over the last year and my spending power is down.
- B) move from adding to the brokerage to paying down the loc, or at least the interest. I still don't like this for the same reason as A but it seems to hedge both sides a bit better.
- C) stay the course as the markets ALWAYS find their way back. Take any losses in stride prepare an emergency fund (heloc ?) for a possible equity call scenario.
For now I'm holding out with option C. Am missing any obvious solutions or am I on the right path?