"Gorilla in the room," indeed. From TCW are the ridiculous supply/demand dynamics of the MBS...

"Gorilla in the room," indeed. From TCW are the ridiculous supply/demand dynamics of the MBS market thanks to the Fed's planned $480B/year in purchases. Maybe it really is time for the mortgage REITs to deleverage and take a vacation.
Comments (22)
  • alex.c
    , contributor
    Comments (17) | Send Message
    I just sold my 400 shares of AGNC today at 32.33. I benefitted from 6 months of dividend purchasing the stock at 30.- I do encourage everybody holding REIT's with the same model to sell!
    24 Oct 2012, 12:16 PM Reply Like
  • AlbyVA
    , contributor
    Comments (839) | Send Message
    Sucker. You'll regret your decision.
    24 Oct 2012, 01:26 PM Reply Like
  • est1212
    , contributor
    Comments (24) | Send Message
    Too early to sell. You should wait until the US presidential election is over.
    25 Oct 2012, 12:22 PM Reply Like
  • alex.c
    , contributor
    Comments (17) | Send Message
    I'm an investor who lives in Geneva, Switzerland.
    24 Oct 2012, 12:18 PM Reply Like
  • Cavalaw
    , contributor
    Comments (167) | Send Message
    Alex , if you had waited only a little a bit you could have sold AGNC at around 33
    24 Oct 2012, 12:20 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
    I am out of all REITs save for 1200 CIM and tokens of ARR, NLY, and sold PSEC in total. Believe non exposure is smart in here.


    Capt. Brian
    The Lost Navigator
    24 Oct 2012, 12:35 PM Reply Like
  • ejh1
    , contributor
    Comments (15) | Send Message
    PSEC is a BDC
    24 Oct 2012, 04:37 PM Reply Like
  • Trongod2000
    , contributor
    Comments (105) | Send Message
    Capital in all the US markets is very much at risk with the cliff on the horizon. We have all seen that the big guys can sell millions of shares in a microsecond. Leaving us with the losses at the end of the day. Everyone is playing a game of chicken right now. Everyone is saying "sell and collect my capital gains at the old tax rate" They have until the cliff to do that. They are hoping the cliff will be resolved. We know it won't. IF I had a way to check... I would bet big money that every congressman has already gotten out of the market and taken their gains. They will buy back in after we all jump off the cliff.
    24 Oct 2012, 12:55 PM Reply Like
  • MexCom
    , contributor
    Comments (3069) | Send Message
    This topic gets lots of clicks by virtue of SA piecing together a "new" blurb based on previous SA items and a Twitter link. Good reliable information? Do they care? And only one ad in the margin on my screen.
    24 Oct 2012, 01:19 PM Reply Like
  • bysie
    , contributor
    Comments (8) | Send Message
    We need real numbers on the mReits. but this is all scare tactics from shorts. Its self fulfilling. There has been a pullback ok., so now we are hearing that the fiscal cliff will finish the job.
    The individual small investor is so easily manipulated by the big boys, and press reports that we do exactly as we are told....
    We have become traders by necessity. preserving capital has to be paramount. !!.
    So when are we going to start to DEMAND larger distributions as dividends from ALL publicly traded companies.
    We are in mReits for the dividends, as most companies do not "share" much of their wealth with shareholders....Do any of you think that should change ?
    24 Oct 2012, 02:20 PM Reply Like
  • Investingdude
    , contributor
    Comment (1) | Send Message
    Yes, this mortgage REIT play is over now. Time to look elsewhere for dividends.
    24 Oct 2012, 03:21 PM Reply Like
  • stuoliver
    , contributor
    Comments (20) | Send Message
    Held 1000 shares for 18 months
    in at 27 sold at 35
    24 Oct 2012, 03:33 PM Reply Like
  • nicholas davout
    , contributor
    Comments (2929) | Send Message
    All mreits back up today gentlemen, .5 to 3.5% each.
    24 Oct 2012, 03:55 PM Reply Like
  • TKTK
    , contributor
    Comments (7) | Send Message
    The more everybody bad mouths AGNC the more it goes up
    What are you trying to do make it go down in price so you can pick up a couple of thousand shares
    24 Oct 2012, 04:09 PM Reply Like
  • tomsmail37@yahoo.com
    , contributor
    Comments (2) | Send Message
    If things are so bad for REITS because of the Fed, why are they ALL going up like there's no tomorrow???
    24 Oct 2012, 04:19 PM Reply Like
  • pepe1996
    , contributor
    Comments (33) | Send Message
    I guess if you are a day trader than sell your stock for small profits. long as agnc pays 5.00 bucks a share a year,I will continue to hold my stock,I also think everytime a annalist downgrades a stock more than I DARE say everyone seems to panic.
    24 Oct 2012, 04:21 PM Reply Like
    , contributor
    Comments (33) | Send Message
    I panicked in 2004 when NLY had trouble and they cut their dividend, had I kept my 500 shares i would have been way ahead. when the spread increases NLY once again will pay higher dividends. So I lost money in 2004 by selling for 11.52 I wont sell this time even though I am way ahead on the purchase price and dividends........al
    24 Oct 2012, 08:49 PM Reply Like
  • adayak6
    , contributor
    Comments (6) | Send Message
    You're giving a lot of those capital gains back in taxes,unless it's in an IRA, I like the income.
    24 Oct 2012, 10:52 PM Reply Like
  • adayak6
    , contributor
    Comments (6) | Send Message
    I am not a sophisticated investor by any means, but I am still buying mreits like HTS and others. Even if they cut their dividends they are still a better dividend player then you can find.
    I am not in for capital appreciation, but income is the name of my game plan.
    24 Oct 2012, 10:52 PM Reply Like
  • pepe1996
    , contributor
    Comments (33) | Send Message
    I do get it.Unless you have more than a couple hundred shares its simply not worth sell and buying it back unless you at least have a 5-10 dollar profit per share.I think it is time to get rid of capital gains taxes period
    24 Oct 2012, 11:00 PM Reply Like
  • alex.c
    , contributor
    Comments (17) | Send Message
    Thank you Boog. Despite Selling all my AGNC share (as well as CYS and NLY shares), I am not trying to "bad mouth" these REITs but simply state a fact. CYS, with the same business model as AGNC is down big time. I was intending to keep buying many more of these stocks until Bernanke decided on QE3. I was a convinced LONG. I think the risks have become too high today and it is better to get out even with a small profit than take those risks. Should I be wrong I am certain there will be new entry points soon enough.
    25 Oct 2012, 02:40 AM Reply Like
  • Pessimistic Optimist
    , contributor
    Comments (179) | Send Message
    I am still long ARR..only ARR at this point. after .01 in dividend drop I still enjoy the 14+ % dividend.


    I still take profits monthly and DRIP in. The 9 cents is holding and as the price of stock drops, I will purchase from it at a cheaper price. I sold half my folio much higher, re-adjusted my stop and if it hits I will sell off again.


    It has been said and I will repeat for those who seem to forget, or panic and sell everything off.


    "nobody ever lost a dime by taking profit!"


    It works for those who sell all or half, and these folks should not be harangued for their decisions. Its their dough, their comfort level and their emotions.


    Please don't go down the capital gains tax road.. I use the IRA for these mREITs. I do not believe this run is over, however I am protecting my gains just the same. I like sleeping at night and stop outs allow me that piece of mind.
    25 Oct 2012, 05:22 PM Reply Like
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