Freddie Mac Delinquencies Rise as do the Bonuses
Once you thought it was safe to get back in the water ..it isn’t..as they would say in the Jaws movie. A scary fact is evolving. Freddie Mac said November delinquencies on single-family residences rose to 3.72% from 3.54% in October and 1.52% a year earlier.The kicker is this more than double worse than last year! Wait a second…things are getting worse than last year. That is not good news. I thought the world has recovered. There are so many investors flocking to buy real estate think they are stealing deals. The thing that they forget is that cheap can get cheaper. Firstly I have no idea on the direction of the housing market, but this is not a good statistic that delinquencies are increasing. Funny thing though..Freddie shares were up 1.48% at $1.37 premarket. What is more upsetting as I stated in the title..the bonuses are rising. The Federal Housing Finance Agency approved compensation plans for Fannie Chief Executive Michael Williams and Freddie CEO Charles Haldeman Jr. of approx $4 million to $6 million each. Not bad for a situation seemingly only getting worse.
What is my point other than I would not be surprised to see more of a housing slump…many are predicting the housing market has bottomed. When one trades commodities…we do not predict..we trend follow. This is not overly popular because people want to consider themselves smart…that they knew something before someone else.
Well as a commodity trading advisor that trend followers. I am humble.. I know I do not know the future nor does anyone else. More so when I read stories like this.. I feel many people will be on the wrong side of a trade…buying into illiquid real estate that might not be able to get out of. What is one of the best parts of commodity trading is the liquidity. I can liquidate virtually everything in managed accounts in less than 5 minutes and with commodity funds that I have invested in, approx 1 month..Try doing that with real estate..
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Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money

My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere to the philosophy of trend following.
Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.

























































































