Monday, June 6, 2011

Stock indexes are down for 4 straight days.

CIM clode at $3.73
CIM - $.06 to 3.73 (  book val. is $3.45)  IVR 22.43 unch,  AGNC -.03 to 30.31,  NLY -.02 to 18.20, ARR +.01 to $7.57, NASDAQ - 30.22 (-1.11%), silver +.52 to $36.81, gold +$2.10 to 1544.50, and the $ index + .294 to 73.986.  Unemployment is still over 9%, ironically big businesses are doing fairly good but people are not back to work. I think much of this is much of our production is done overseas or by machines.  The problem is the rich are getting richer and the poorer are getting poorer. I do not think the big businesses are passing down the savings they reap by using machines and cheap overseas labor. I also do not care much for regular stock because very little cash gets to the stockholders and equity can take a big hit without notice. I am still bullish on REIT stock, the slowing growth will likely delay any interest rate hikes for a while. I predict things will pick up though and rates will go up early in 2012. AGNC has a good hedge against interest rate hikes, they have an investment in place at all times to insure themselves (and the stockholders) against a hike in rates. For those with an appetite for a little risk CIM is quite oversold. I also think the Nasdaq is kind of oversold now. GNT is down more, it could go down again if gold takes a drop, it is oversold some but not like CIM.  AGNC should declare dividends any day now- I predict another $1.40.
"Let me be a free man. Free to travel. Free to stop. Free to work. Free to choose my own teachers. Free to follow
the religion of my fathers. Free to think and talk and act for myself."
 Chief Joseph-Nez Perce


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