Macquarie shares drop

Many people take out an investment loan to build wealth buying stocks and shares. This is not always a great idea with the events of the last week regarding Macquarie Fortress Investments Ltd. a good example for those who may not be sure about the pitfalls of investing with borrowed money.

Macquarie Fortress Investments Ltd., which is managed by Australia's leading investment bank, has lost ground for a seventh straight day on the Australian Securities Exchange (ASX).

Macquarie Fortress Investments Ltd., was forced to dump loans at a loss of $25.5 million and has announced it may not be able to refinance loans that the fund has taken out.

The fund is run independently of the parent company Macquarie Group Ltd., and they have already announced that there is no intention to bail out the fund.

Macquarie Group Ltd., has seen the price of its own shares lose ground on the ASX since news of their troubled fund became public.

Not all shares you buy or investment funds you choose to put your money into will lose money, but they won't all make money for you either.

Check what investment opportunities are available to you and understand how much risk is involved. If you are considering taking out an investment loan then make sure you fully understand that the share market is a risk and while the rewards can be substantial, so too can the losses.