Freddie Mac: A Strong Trump Trade Candidate
- Freddie Mac is a GSE that provides mortgage financing to the American real estate market.
- FMCC shares surged 39% after Trump's re-election, as investors bet on a potential privatization of the company.
- With the company hugely profitable, Freddie Mac's equity could be very valuable, hence the interest in a privatization plan.
- Although the upside is great, I recommend investors only speculate with money they can afford to lose due to many unknowns and competition from well-informed institutional investors.
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With Donald Trump being re-elected as America's 47th president, I have been analyzing the various 'Trump trades' to see whether any of them make sense. One prominent 'Trump trade' that has been bandied about by hedge funds is the Federal Home Loan Mortgage Corporation (
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