I see this dropping to the mid-teens by Memorial Day, Look at the FED policy curve trajectory. When FED announced the taper cutback in June 2013, AGNC BV fell from 31.64 to 23.93, a 24% decline, the 10 yr treasury rose to 2.6%, now the 10 yr treasury is rising once again and will spike when warm weather returns. Dividend got cut from .80 to .65, and it is poised to drop to .50 at the next cut. I think the HIGH target price for this M-REIT for traders is $18 and low is $15 for the second quarter. THIS IS AN EXCELLENT TIME TO SHORT OR SELL.
It is coming soon. As soon as the warm weather arrives, well it is happening now, 10 yrs treasuries will spike to 3.5%, by end of year they will be 4-4.5%, this will be halved once again. The reason, these M-REIT's managers are blindsided, they were loading up on more M-REIT stock and MBS, this will go even lower, probably single digits. Unemployment will drop for the next 5-10 years, just from babyboomers retiring. this is a no brainer. Rates are headed higher, they are rising as we speak throughout Europe and Russia.
The housing market is flatlined, household income is flatlined, new job creation is half of what is needed to get even with new entrants to the job market, global economies are weak, Russia is threatening Eastern Europe, Syria is a train wreck, Iran is a bigger wreck, China is threatening in the South China Sea, Obamacare is a disaster, long term unemployed are reclassifying themselves as in the job market as opposed to not looking - driving up total unemployment, draught is driving up food prices, gas prices are rising, loan demand is weak, 3 million college grads are about to hit the labor market, and on, and on, and on. The ten year will be lucky to exceed 3% in a year. Per Bill Gross - "If you want to trust one thing and one things only, trust that once QE is gone and the policy rate becomes the focus, the fed funds will then stay lower than expected for a long, long time," he said.
Sentiment: Strong Buy
Keep Day Trading. A smart investor is looking at long term growth. AGNC has an excellent dividend and yield. So, keep on bashing and settling on your measly couple hundred dollars. This stock makes me money regardless if it goes up or down. Great dividend and yield. VERY STRONG BUY.