Fannie Mae (NYSE:FNM)
Q: Hello, As a new investor PERIOD and at Scottrade, I want to buy FANNIEMAE stock. Do you think it will go up to at least $2.00 within the next 2 years.
A: We continue to have FNM in a Downtrend having issued the alert in October 2008. Given the large involvement of the US Treasury in this mortgage market it is of little surprise the stock has basically been stuck in the below $1 range. Also, SmarTrend is largely technically focused with trend lasting, on average, 20-30 days. So we cannot predict a two-year price at this time as there are many things that will need to occur for FNM stock to appreciate during that timeframe. In any event, our subscribers find it is best to wait until an Uptrend before considering any long positions.