I'm having a hard time understanding why AGNC is so far below book value. Does the market think the BV will fall? Or that a fiscal cliff crisis will disrupt short-term funding? Is it just fear of a dividend cut?
I've got a feeling it keeps going down slowly until this useless Congress and Empty Chair extend the Bush Tax Cuts then you better stand back the big dividend stocks are going, as Jackie Gleason used to say Too the Moon!!!!!!
Sentiment: Strong Buy
I think the fear here is (and it is fear) is that AGNC will go so far down that even if it does shoot up, many will still be underwater....I mean, how many here are in AGNC above, lets say , $32?
I would be preaching to the choir if I mentioned emotions have absolutely no place while trading and investing in the market.
I'd watch the volume, when it returns to normal, its a signal that the panic selling is subsiding. I suspect we could fall another dollar, and don't expect a significant rebound until the government passes a budget. Hopefully we won't get another national credit downgrade?