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Article: INVESTMENT TRENDS; Beleaguered Freddie Mac,; Fannie Mae offer opportunities
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- March 14, 2005
- Author:
CopyrightCopyright 2005 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
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The amount of mortgage debt in the U.S. is growing rapidly and
some say investing in the two big government-sponsored mortgage
companies is a great way to play that trend.
The Federal National Mortgage Association, known as Fannie Mae,
(FNM) and the Federal Home Loan Mortgage Corp., known as Freddie Mac,
(FRE) are the dominant forces in the secondary mortgage market.
They have increased earnings at average annual rates of 14.6% and
16.5% in the last 10 years, respectively and their stocks are cheap.
"You can buy these great growth companies at huge discounts right
now because of the political landscape," said John C. Thompson, vice
president and portfolio manager at Thompson Investment ...