What are your thoughts on buying Fannie Mae stock?

Question

Is anyone out there gambling on them like I am? I think this stock will skyrocket soon. What do you think?

Answer 1

It is very, very, very unlikely they will be going out of business any time soon.  It is also very unlikely that everyone in America will wake up tomorrow with all the money they need to pay hard cash for their dreamhouse.

I would look for FNM to return to somewhere between $30 & $60 in the not-too-distant future unless complete & utter chaos comes to America....

Answer 2

I am too.  I bought Fannie Mae and Freddie Mac last week and have already doubled my money.

Answer 3

It's probably worth a small percent of your portfolio.  Think of it as a long term option: if it recovers, you will make a bundle; if it get taken over by the government, you take a total loss.