Yes, a Real Estate Double dip may be possible, especially if the government stops pumping money into Freddie and Fannie.
The news are mixed
this is the reason why CIM will be stuck in a trading range for in the near term. Just sit tight and collect your nice dividend
If you are long on a stock, I see a sudden increase in bashing on a board as a positive sign. They "think" by bashing they will drive the PPS down so they can buy the stock at a reduced rate. However, I have never seen a basher bring a stock down, have any of you? So when a
basher(s) came a calling, they know that a stock is good, they just want it cheaper. What the crap do I know, JMO.
Opinions are a dime a dozen. Everyone has one, as do I!
Some folks predict a housing recovery, others predict a further dip. Nobody really knows for sure, although someone will ultimately wind up being right.
Yes, i did read John Paulson's comments about the Real Estate market, and about him recommending Americans to "buy houses" now.
However, I wouldn't trust anything John Paulson says.. he could be on the other side of the trade shorting Real Estate, waiting for a double dip!
That is how he became a famous billionaire!
There are some hopeful news about Real Estate, like Transunion's report about delinquency falling for the first Quarter since 2006:
I agree 100% with you Bob.
It is all a matter of timeframe.
CIM's portfolio will no doubt appreciate when the Real Estate market recovers, however a recovery may bring higher interest rates which will affect yield, but this scenario won't be as bad for CIM as it will be for Annaly as they are a 100% agency play.
CIM is riskier than Annaly now, but in the long run, Annaly may be riskier if the government gets tired of pumping money into Freddie and Fannie money losing business quarter after quarter and decides to privatize the whole thing, like Republicans are already demanding.
Either way, CIM is a great long term hold because of the divs and the appreciation potential.
Not sure if this was directed at me..
fyi, i bought 15k shares yesterday on the dip.
CIM is definitely a buy under $4, and a hold until interest rates start to rise.
It is no wonder most of the shares are owned by professional institutional investors.
as i recommended.. Anyone who was smart enough to buy under $4, you can reap some good monetary gains. Sell at around $4.20 and repeat the cycle.
This trading pattern can yield even more profits that the dividend itself.
You can trade this and collect the divs as well for huge yearly gains.