Fannie Mae-No Politics (FNMA)

[RickNagra]

You bring up a good point Chronic Hemp Hog. Hog ? You'ss a hog ? These are the hog days of summer. Sitting on da porch rocking back and forth sipping some lemonade and watching fur anyone trespassing on yer GSE property. Oh I was having a John Wayne moment there.

You might be correct in that there really is no catalyst from now until the November midterm elections. I made this comment earlier back a few months ago. The perfect gift for the shorts. Short away because there is nothing that could possibly get in the way. This is the reality. However as we inch closer to the midterm elections things will change. The market is 6 months forward looking. There is no doubt Mnuchin will act in 2019. If you think otherwise you really should just sell all your shares and move on. At some point in September and October the price will stabilize and then start moving up in anticipation. I personally thought $1.65 was the bottom but it appears I was somewhat off. Still in the long term whether the bottom is $1.65 or $1.40 makes no difference. No one can predict stock prices. I do not know exactly how low we will go nor do I know exactly how high we will go but I do know we will go up at some point in 2019. I am WhaleBalls and the CEO and CFO of the WhaleBalls Institute.

The problem with the GSEs is short term there is no positive catalyst. Which means dead money. This goes lower. There is no reason for them to go higher right now. Nothing to look forward for the rest of September and then all of October. Downward pressure because 50 days of zero news means lost opportunity elsewhere. People are selling and moving on until closer to the elections.