When the DOW went below 11,000, I should have taken that as a sign to put more cash into the stock market. There were blue chips that were being rocked hard and taking a huge beating. The four stocks particularly were Fannie Mae (FNM), Freddie Mac (FRE), General Motors (GM), and Ford (F). These were all great short buy candidates and they all sky-rocketed at the end of this crazy week.
The early part of the week had the DOW hitting new lows. Fannie Mae and Freddie Mac, two of the most renown mortgage loan companies, were stating they they had finally made too many foreclosed loans and they would have to find ways to establish funding. These two companies are the life-line of 50% of America’s mortgages. It would be a huge shame of they were to go under. Stock prices dropped to less than $10 on each company as people started short selling to stock. I knew these companies would eventually be funded by the government. They will not let these companies take down the economy. It would be a disaster in the United States’ economy. I should have seen these signs and bought early. Both of these stocks doubled at the end of the week.
The next two companies made a pretty fast drop this year to which one company hit a 50-time all year low and the other hit a low not seen for 20 years. These are both America car companies that have been running since the beginning of the Industrial Revolution to which one had created the first car and the other, General Motors, has been a respectable car company building cars for the United States since the early beginnings. These two were a harder speculation because oil could have kept going down. Both of these stocks increased to 20% at the end of the week.