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Is this a form of hypothecation? [Archive] - SOWPub Small Business Forums


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June 6, 2007, 06:51 PM
Hello, Everyone.

What would be the legal/technical term for this?

I borrow $25K from my uncle at 6% simple interest (his savings account is only paying him 4%). Then, I put the money into a moderately aggressive mutual fund with a history of averaging 10-12% returns annually.

Is this a type of hypothecation? Would it be considered some kind of arbitrage?

How can I learn more about this type of investing? Didn't a guy named Gary North have a book out on this?

Thank you All for your help. -- Thomas

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