M, I hate Fannie and Freddie with a passion and almost always have a third of puts on them and more credit bear spreads. For a very short term trade, I might zip out of them right now, but for the long haul, these bloated stock prices are doomed.
People almost never learn from past mistakes, hence the huge recidivism problem at prisons. Also, one of the wisest mutual fund managers I've ever known, Hank Hermann from Waddell & Reed (now their President and no longer doing anything worthwhile with his time <VBG>) said that grown men almost never change. At the time, I was young and horny enough to only care about grown women, but now I see his point. <g>
I would definitely consider bailing on Merrill puts, as this rate cut will bring more suckers into the brokerage offices and more crappy cos. to the deal table. Short term, but they can kill you short term. JPM and C are still going to be beneficiaries of the damage Greenjeans is causing with these rate cuts, so I'd hold at least a third of puts on them.
Yes, the Dow is yesterday's news. The Naz will rule during this bear market bounce. |
