Wednesday, April 22, 2009

Headed to Napa Valley tonight

Sarah and I are about to hop on a plane to Napa with a few friends. The rigorous schedule includes a sunrise hot air balloon ride with champagne (I suppose we should call it sparkling wine in Napa) with winery tours and a bike ride through the vineyards. This is followed by a night tour of Alcatraz and night of house music with two DJ friends.

Not the best time to be going on trips given I'm heavily short the markets and we're at the peak of the largest sucker's rally since 1933, but prices are low and the time is right. I'll probably just put it all on my cashback credit card and sell the assets to pay it off next month. Being leveraged short the S&P 500 will probably pay more than the 0.7% or so I'd have to pay on a card (and we're not talking a lot of money here) so this is one of those rare instances where I think it is worth it to carry an unsecured balance. I'll carry secured balances all day long, borrowing as much as I possibly can on student loans, car loans, or mortgages because the rates are lower than what I can earn by investing over many years. Unsecured loans are usually a different story because the rates are sky high and you're not looking at a long-term time horizon (like 5 to 30 years).

1 comment:

Kate King said...

Rick, Enjoy your time here in Napa Valley. We're happy to have you come and support our local economy, even if it is on your cash-back credit card! Have fun!
Kate King
CEO
Napa Chamber of Commerce