Sat, Jan 31, 2015, 12:58 PM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

American Capital Agency Corp. Message Board

  • turbofever turbofever Dec 4, 2012 4:34 PM Flag

    AGNC Dec bulls: Please be careful re: Dec 11th

    Haven't posted in a while. Continuing to essentially stay in cash w/ my portfolio for now, so not too much to say lately. I suppose the vehement & frequent debates here about politics and religion have been a touch off-putting, too ;)

    Anyways, with no one talking about it (that I spotted), but with a variety of people posting about loading up on bullish AGNC options plays for late December... I thought I'd note once more that the Fed's Dec 11-12th meeting is rapidly approaching.

    The potential risk, even if it doesn't have a huge likelihood, is that the Fed could expand their program(s) in a way that could impact or be perceived to impact mREIT's. Example: the Fed is certainly capable of increasing the $40 billion/month MBS purchase program to a higher monthly limit.

    I hope the FOMC meeting is a non-event, and also that you guys get a great divvy run! The div run was a wonderful gift for me last quarter. But should the unexpected happen with the FOMC, AGNC's price could quickly take a hit without enough time left to recover for a successful Dec div-run play. The possibility of this is at least worth me taking the time to post, in case someone with skin in the game or contemplating a bullish play hasn't already considered it.

    For me personally, were I to ignore the fiscal cliff risk and decide to place a bet on a Dec AGNC div run, I'd wait 1 more week until Dec 11th, to at least take the (small likelihood, high-impact) FOMC risk off the table, gambling I suppose that AGNC's price doesn't increase much in the next week.

    Best wishes/good luck to all.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Hey Turbofever, the general forecast is QE2 would get re-vamped into something in January.

      Last I read about all this the jury is still out on weather it will be just like QE2, more than QE2, or less than QE2.

      But I don't think is much "shock" potential as the expectation is something will happen once QE2 ends anyway.

21.55+0.03(+0.14%)Jan 30 4:00 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Visa Inc.
NYSEFri, Jan 30, 2015 4:00 PM EST Inc.
NASDAQFri, Jan 30, 2015 4:00 PM EST