Game Plan: Mortgage Index
Posted on August 03, 2007 at 19:24 PM EDT
The game plan this week was about not getting super bullish until the mortgage madness has ended. A "Mad Money Index" was created and it is made up of: MGIC Investment Corp. ( MTG ), Countrywide Financial Corporation ( CFC ), The Bear Stearns Companies Inc. ( BSC ), KB Home ( KBH ), Centex Corporation ( CTX ), MBIA Inc. ( MBI ), The Blackstone Group L.P. ( BX ), Thornburg Mortgage, Inc. ( TMA ), Beazer Homes USA, Inc. ( BZH ), Washington Mutual, Inc. ( WM ), Goldman Sachs Group, Inc. ( GS ) and Citigroup Inc. ( C ). It was said that when this Index stabilizes and the Fed cuts rates we will be in the clear. Up until this point keep an eye on these stocks to measure the mortgage madness. Jim pleaded, "Mr. Bernanke cut the rates now as many people could be about to lose their homes because you are not listening." Game video.
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