Vito's Pick of the Week: May 20, 2013

May 18, 2013

 

The market conditions right now portray signs that our economy is not only in wind of a comeback, but that our future intends to hold a momentum like a cheetah on a gazelle before sunrise after months of starvation in Western Zimbabawe. The stock market has closed at all time highs the past 4 weeks in a row. That is not a weak sign of economic insight, to say the least. The question is, how do we ‘play it safe ,’ while still holding good positions that will give us good returns.  My picks for this year include Mortgage Companies (FNMA) (RDN) (MTG) that hold great Hedge Fund sentiment and overall strong Stochastics, along with my two favorite tech picks (MSFT) (RVLT) that show signs of upward movement, 1 consumer goods company (KORS) that is dominating women’s fashion, and a credit card company that continues to show itself as the markets bulldog (V). 

 

My pick for this week (May 20-24) lies in the Mortgage Industry, showing a 40% increase just this past week is Fannie Mae (FNMA).  Being the hegemony of the Mortgage Business, one cannot doubt to say that FNMA is not ready to reclaim its thrown, and the data to support this claim is endless. Since 2007’demise, it has been considered such a ‘penny stock,’ that most investors have stayed far away, but, this past weeks performance alone is just the beginning of what I see to be a 300% increase, this time next year. Factually, Fannie Mae is clearing up their debt with the National Gov’t 20% faster than expected and has a great position for improvement with the support from other ‘comeback’ companies like AIG, GNW,RDN, MTG, to name a few. Consumer Sentiment is the highest it has been in 6 years, jobless claims are lowering month by month, and the Home Prices are evening out from there highs in 07’, and more recent lows in 11’-12’. Overall, the Housing Recovery is not only real, but staying away from an investment opportunity like this one, may be the worst mistake you could ever make.  Stay tuned for more date on my weeks pick.