Originally Posted by surlynkid
perhaps he is. the best i am getting on 5 year CD's in my CD ladder is under 2%. I then pay taxes on the interest. Investing in the market is fine if you have the time and money to wait out any big drops. Just because it made a big run up this year does not mean the bottom will not fall out after the elections or if the Euro debacle gets worse. a 2% loan on a car is not that fantastic.
Considering that annual rate of inflation is about 3%, borrowing at or below that rate makes sense. Keep the cash for the drop you are talking about and invest in stocks then.