Replies to post #596839 on Fannie Mae-No Politics (FNMA)

[955]

FNMA and FMCC tied to WS. When there's no news, they track WS by 2x on a downslide.

Why are people selling FNMA and FMCC? I'm just trying to understand the panic associated with these stocks given nothing substantial has happened to drive this price collapse.

[jcromeenes]

Probably selling and assuming they can get back in lower. I'm staying firm as I feel comfortable with the number of shares I own and am not judging daily price moves. My goal is the court settlement which will sky rocket the price - or crush it. Day to day will just make you crazy.

[Mnemonic]

Probably fears of a global recession. These companies can't survive another downturn with capital levels where they're at. I think people are overreacting at this point, though. Stars kind of aligned with coronavirus/market correction/oil price war, but it's not the apocalypse.

EDIT: Also just generally people taking risk off the table. Risk is higher here than other investments (or none at all).