I've been wondering about this for a while...
If the historical market return is about 7%, why banks loan money at a low interest rate (example : 3% mortage) instead of just investing in the stock market ? Is it just a way for them to diversify and manage risk ? Is it legally impossible for banks to invest too much in the stock market with their clients money ? What am I missing ?
Thanks !
Submitted February 20, 2019 at 08:12AM by silentimagehelp https://ift.tt/2V8jdQW
