Blog Post

It's been a while since my last post, and I guess the main reason is because all of my investing cash was tied up in stocks that were under performing.  I had a really good run from December to the end of January, but then I got into Ford, ING, and South West Airlines.

Ford has finally begun to rebound, and I made a nice little 43% profit, it just took longer than I thought it would.  And, if I had been patient yesterday, I could have made it an even 50%.  I logged into Google Finance, and watched the real-time price all afternoon.  It hit 3.25 around 2:30, and I thought it could hit 3.30, so I waited, and waited, and waited.  Then around 3:30, it started dropping.  When it hit 3.15, I panicked and replaced the limit order with a market order.  It ended up selling at 1/2 @ 3.13, and 1/2 @ 3.14.  Then at 3:50, it went back up to 3.24, and stayed there till close...  Man that's frustrating, but that's the market.  After I had a chance to relax, I realized I made a nice little $150 after commissions, rather than $200.  Either way I'm ahead.....

Anyway long story short, I've got some cash to make trades with again.  After spending about 8 hours researching affordable stocks, I settled on the following Fannie Mae, and Ford, this is why:

Ford - When I bought into Ford in December, I was going long.  I was hoping to hold the stock and forget about, and sell in a year or two when the price had doubled.  But the stock has been more volatile than I thought it would be.  We are not in the recovery yet, and car sales in this recession have got auto investors dancing on eggshells.  Every little bit of bad news sends the stock down 20% or more in one day, while any good news can send the stock up 20% in one day.  With movements like that, I figure I can get in and out repetitively, and make more money than just staying in and going long.

Fannie Mae - This is the perfect time to buy a home.  The moves that the Fed has made to lower interest rates combined with the $8K tax credit, and the fact that home prices are over 20% lower than their 2007 peak makes this the best time in history to buy.  All you have to do is look around to see that this is not just good advice, but its advice that is being acted on.  Many of the people that I work with, as well as myself are planning to make the leap into home ownership this year.  With a rebounding housing market, Fannie May stock should go through the roof.  And, once the housing market rebounds, you can expect to see the DJI, and S&P back in the 10K range....