Fannie Mae-No Politics (FNMA)

[chessmaster315]

When playing pool, the experts always think about the next shot, after they sink the ball. It isnt just about making the ball go in the hole, it is position for making the next shot, and, position for making still the next shot.

In a like manner, an investor needs to think of "what will I do with the profits" (from fannie mae) when you sell.

For me, I dont have anything better to put my money in than fannie mae. So, If I sell, I would likely just buy it back.

The next question is, "Can I buy it back cheaper, if I sell today?"
Maybe. However, its at least as likely that I would have to pay more for the stock if I sell today and try to buy it back later.

I have made that mistake in the past.

Trying to make money on the market makers is unlikely, from a long term point of view. Probably that is why Warren Buffet holds his positions and does not make changes unless there is a signicant change in the company.