They sure will as a whole. Some stocks are sold for a song, so
I sing. In particular, with Obama administration in office, I
give 90-100% chance of survival (no BK) for US auto makers (F and GM).
The market gives 10% at best. That's a valid reason to get long. -g-
Fannie and Freddie? Well, at below a buck they may be worth
the risk of complete nationalization, which may or may not
happen. Market cap < 1 billion. They control the whole US
housing market. On the other hand, if things improve a bit
and the government releases
them from conservatorship, the bulls are set to make at least
2000% from the current levels if not 5000%. Goldman thought so and bot
'em in November for a song, I decided to duplicate. They
can't go BK, cause US government is behind 'em. Of course,
the bears say - things will NEVER EVER improve, but these
printed $$$ can do magic to both commodities and assets -
in particular, push the housing prices up. Note that the latter
is now a US policy, the goal of the monetary policy
no matter what. -g- |
