Sell Block
Posted on August 09, 2007 at 18:42 PM EDT
The "Mad Money Mortgage Madness Index" was set up last week to measure the three crisis points in the market: banks, brokers and homebuilders. If you bought these stocks you would have been up 11% until the 387 point drop in the Dow today. Based on the motto bulls make money, bears make money, hogs get slaughtered; if you did not take profits after an 11% gain you probably deserve to get hurt. Jim told us we might as well sell while we can. Companies to be sold according to Jim are MGIC Investment Corp. ( MTG ), Countrywide Financial Corporation ( CFC ), The Bear Stearns Companies Inc. ( BSC ), KB Home ( KBH ), Centex Corporation ( CTX ), Citigroup Inc. ( C ), Goldman Sachs Group, Inc. ( GS ), The Blackstone Group L.P. ( BX ), Washington Mutual, Inc. ( WM ), MBIA Inc. ( MBI ), Thornburg Mortgage, Inc. ( TMA ) and Beazer Homes USA, Inc. ( BZH ). If you are greedy you pay for it and these stocks showed you that.