Portfolio Annihilation!

In yet another dazzling display of grasping the insanely obvious, the talking heads and "experts" bring you the news for the day (which we simply had to publish for reasons that will become instantly clear):

UBS Securites Cuts Their Ratings on Fannie Mae and
Freddie Mac Stocks From Buy to Hold

And they lowered price targets on Fannie Mae from 88 to 31 and on Freddie Mac from 87 to 28, this according to Reuters news, today Nov. 26, 2007.

On what planet have they been living? Fannie Mae has already dropped from $69 a share on Oct 4 to as low as $26 a few days ago! Freddie Mac has dropped from $64 to $24 in the same time period. And now this "expert" tells us to hold the stock? What a moron!

Technical analysis would have told you to sell Fannie Mae at many points, the final being $59, and Freddie Mac the final being $55. But they would have you hold it now at $26 and $24 respectively?

Portfolio Bunny advises you to use technical analysis or find a financial advisor who uses it. This is only one instance where a single stock could destroy a portfolio. Don't fall prey to talking heads and "experts."

This has been a live report from Portfolio Bunny... we now return you to your regularly scheduled blog.