JoeChristmas

Fannie May Just Be Worth the Risk

If your time horizon is 3-5 years, I have a hard time not seeing this stock trading 2-3 times higher. There may be some ups and downs in the short term, but all the stars have aligned in their favor. Perhaps most importantly, their competition is non-existent. Add to that a loan portfolio that is not nearly in as bad shape as people think (check their recent presentations for details), and Congress that will bend over backwards to ensure Freddie and Fannie thrive. I am already long in Freddie and expect to be very overweight in the coming months.