Thursday, October 2, 2014

The Bullet Dodge

Yesterday Fannie Mae (FNMA) and Freddie Mac (FMCC) both got smacked down hard. As luck would have it, I got out last week after taking a minor loss. No clairvoyance on my part, but I did re-examine my reasons for getting into them, which was a perceived increase in new home construction. I didn't look at any government statistics, just seeing new homes starting to go up. This was back in May and the two stocks did double back them.  But 5 months out I was seeing no upside bump or jump at all, so I pulled the sell trigger. Good thing I did. I'm still following them. At the new price I consider them both buying opportunities, but not yet, I want to wait a few days to see if they continue to drop (down about 10% today). Sure, a lot of it is that the markets have been down for 3 days, but at a time when everyone else has been getting a slap on the wrist, someone opened a can of WA of epic proportions. This is the price range they were at before the big spike so I don't think they'll fall too much more. But you never know.  Sure they may spike up and I'll miss a great opportunity, but I can live with that.  I'm still seeing lots of new construction, maybe the market hasn't caught up yet.  Ten years ago these were both $60/share stocks.  I can dream, can't I?


  1. That is very interesting; you are a very skilled blogger. I have shared your website in my social networks!

    Manual Testing Training in Chennai

  2. On the planet today, it is not under any condition surprising to get yourself shy of the money you have to pay your bills, sustain your family and keep up a sensible way of life. For each average worker who comes up short on cash before they come up short on week, there are shockingly various shady characters willing to advance all of you the cash you require at an over the top loan fee. Payday Loans Chicago

  3. Kingroot is free android rooting tool that works well with any android phone or tablet and powerful enough to root most android devices with just one click. Kingroot works well with both PC and android device, giving you the freedom to root you phone either way Kingroot apk