Yesterday, the Treasury Department announced a takeover of mortgage giants Fannie Mae and Freddie Mac. While the bailout eased market tensions, it's bad news for shareholders: the stock price of both companies took a nosedive.
I knew when I got into this that I was betting against the house, and last week's recovery of the stock price was an encouraging sign - but the surprise announcement this weekend completely erased that, and I've gone from a 66% profit to a 72% loss in a single trading day.
That's just the way it goes, sometimes.
For now, I'll hold my shares rather than dumping them, on the hope that the market's reaction was an over-reaction and the stock price will recover - though it's equally likely (and some would say even more likely) that the firm will sink from a conservatorsip to full-blown nationalization in the coming months.
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