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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (8491)	10/3/1999 12:25:00 PM
From: Michael Burry	Respond to of 78594

I do like Washington Mutual - I sold when it broke a technical support pattern, expecting to buy it back when it got to its old lows. Well, it's basically there. As a rule I revisit the security when it gets within 10% of old lows, so I've been looking real hard at Washington Mutual. Between my REITs and my Old Republic, I'm already exposed to real estate. WM would be additional exposure for me, as would any re-buy of a homebuiler. So since I expect tax-loss selling to hit the financial sector pretty hard, as well as the potential for deteriorating fundamentals, I'm willing to be patient. With equity/assets of under 5%, WM is not in the strongest shape should its fundamentals deteriorate, i.e. real estate deflate. Out here in Silicon Valley, everyday life feels like a bubble. People can hardly comprehend when I tell them about 90-92 and the foreclosures - not when 2br/1b's are going for 5-600k. I just can't help but think that it will get even uglier before it gets better. Mike