ilmscore | Prediction Details
"remember the historical stock market return has been 10% for the last century that doesn't mean that the stock market goes up by 10% every year that means some years the stock market will go up more than 10% some years the stock market will go up by 10% some years the stock market will go up by less than 10% and some years the stock market is going to fall and so now if you have a 7 or 8% mortgage and the average stock market return is just a little bit higher than that well now that risk to reward rate ratio becomes a little bit more slim because now you're taking on more Risk by investing your money into the stock market but that reward of the average 10% isn't that much bigger than paying down your mortgage of 7 or 8%"
By Minority Mindset | February 16, 2024 | Pending
From video
Should I Pay Down My Mortgage Or Buy Stocks? 00:08:35 - 00:09:09
Interpreted Prediction
When a mortgage rate is high (7-8%), the risk-reward of investing in the stock market (historically 10% average return) becomes less compelling due to the increased risk involved, as the potential reward is not significantly larger than the guaranteed return from paying down the mortgage.

Prediction Details

Topic
Stock Market vs. High Mortgage Rate

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